Royal Enfield, which contributes around Rs 350 crore to the Rs 2,000 crore turnover of Eicher Motors, is looking to tap the developing markets for the first time.
Royal Enfield, which contributes around Rs 350 crore to the Rs 2,000 crore turnover of Eicher Motors, is looking to tap the developing markets for the first time. The motorcycle unit is targeting Latin American countries such as Brazil, Columbia and Argentina. Russia and United Arab Emirates are also on its radar.
Currently, Royal Enfield bikes are exported to the US, Europe, Japan, Australia and New Zealand. Through the newer markets, the company is looking at increasing the share of exports from the current 10-15% to 25-30% by 2013, according to Shaji Koshy, divisional general manager, sales & marketing, Royal Enfield. The company is aiming at 15% growth in the next one year.
Its growth over the last three years has been steady at around 18%. Royal Enfield is also upbeat on rural sales, though Koshy made it clear that the brand is targeted at the high-disposable income segment in India, with a “lifestyle positioning”.
“We are not targeting the ‘office and back’ crowd,” Koshy told DNA Money. All the brands are in the 350 cc and 500 cc categories. Urban and rural sales are poised evenly at 50:50, Koshy said.
Currently, 50,000 units of the Royal Enfield are manufactured at the Chennai plant. This will be doubled by 2012-13 at an investment of Rs 65 crore. The company introduced a novel engineering technique by merging the engine and gear box into one unit in its Thunderbird model. This led to a 15% reduction in the number of moving parts in the bike, resulting in higher fuel efficiency and acceleration, the company claimed.
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