Firm plans to increase market share in mid-size segment
Royal Enfield, a unit of Eicher Motors Ltd., is planning to further increase its market share in the mid-size segment with the introduction of two new bikes in the 650cc category.
“We are already a market leader globally in the mid-size segment comprising bikes from 250cc to 750cc,” said Shaji Koshy, head – India business, Royal Enfield. “Our aim is to grow it further with the launch of the two new bikes.”
The market size of mid-size bike segment globally is estimated to be 14 lakh units annually of which Royal Enfield has 60%, according to Mr. Koshy.
Last week, the firm started exporting the new Interceptor INT 650 and Continental 650 motorbikes to Europe. Despatches for domestic delivery had also begun, he added. Currently, these bikes have a waiting period till March 2019. Mr. Koshy said the company now offered an opportunity to its 3.5 million Indian customers to go in for an upgrade through exchange offer. Payments can be made through easy monthly instalments.
Royal Enfield has three plants near Chennai that produce 350cc, 410cc, 500cc and 650cc bikes. It has targeted to produce 9.5 lakh units for the current fiscal against 8.25 lakh bikes last year.
“Unfortunately, we had a labour strike that resulted in a production loss of 28,000 bikes. So far, we have not revised our [production] forecast for the current fiscal. We might take a relook next quarter,” he said.
On the re-entry of Ideal Jawa, he said; “We created the mid-size segment. It is most profitable. This market will expand. We got our space and we will grow.”
The 650cc motorcycles will come in standard, custom and chrome versions with a three-year warranty and roadside assistance service. In Tamil Nadu, it is priced between ₹2.50 lakh and ₹2.85 lakh.