Royal Enfield Eyes New Heights in the International Market

Royal Enfield has been a premium manufacturer of motorbikes since the beginning of the last century. The company is currently strategizing different measures to reach a new height in the global market. Its recent launch the ‘Thunderbird 500cc’ is designed and engineered to meet such a target. “Yes. We are looking at (new) markets. We have to please our customers…,” Royal Enfield Chief Executive Officer Venki Padmanabhan told reporters. According to Venki the bike is a popular brand in the US, as it meets tough emission norms. Besides the US, company currently ships bikes to over 40 developing and developed countries.

The new Thunderbird is integrated with a powerful 500 cc engine, LED tail lamps, a 20 litre tank and digital meter console. It is available in three vibrant variations of black. It is no wonder one of the most powerful bikes from the company’s yard. Designed to offer pleasure of leisure motorcycling it will surely help the company to enter markets that is crazy for speed and power.

Thunderbird 350cc is a replica of the 500 in terms of looks. The well-proportioned fuel tank, projector headlamp and five-bar LED tail endows the bike with a persona. The company is also working on its other models like bullet and classic in terms of better performance and fuel economy. But the manufacturer is keen to preserve the old world look. The 103-year old bike maker aims to be a key player in the mid-sized motorcycle segment in the world. The company’s R&D team is all set to develop a near-400cc engine.  The company’s popular models are powered by air-cooled, single-cylinder, 346cc engine. The new engine with a slightly bigger displacement will be a remarkable modification given the enhanced dimensions. Connecting rods, crankshafts and other crucial parts proportionate to new platform are being made. The 346cc engine gives the maximum power output of 20bhp, while the 499cc offers around 27-28bhp.  The 535cc engine, that runs the Continental GT café racer returns 29bhp. The company is expecting a tad higher power delivery over its basic versions from the near 400cc engine, say

in the range of 22bhp to 24bhp.

With the four models, Royal Enfield can conveniently populate the midsized bike segment that ranges between 250-750cc. The company sold a commendable number of motorcycles in the last fiscal year, which led to a of profit growth 63.07 percent. Although it was able to sell a meagre number of 443 units of the Continental GT café racer in the domestic market, it has exported 737 units of this model. . In 2013, the shares of the company (Eicher Motors) outdid the broader stock markets in spite of the downswing in the vehicle market. The stocks almost shot up over 70 per cent last year. According to the experts, the credit of it goes to the trust surrounding the company’s bike business The company is now trying to move to the global markets like Latin America and South East Asia to clamber new echelons in international business. According the to the manufacturer, the model 535 cc Continetal GT has given it an assurance and credence to do well in the global markets.

"We believe the mid-sized motorcycle segment is between 250cc and 750 cc, so that's the space we want to play in as Royal Enfield", exclaimed Eicher Motors MD and CEO Siddhartha Lal. According to Lal, the mid-sized bike segment is highly neglected. There is huge scope of growth in this area particularly in the developing markets. On a global basis the volume of mid-sized motorcycle segment is estimated to be close to 1 million units per annum. Presently, Eicher motors is supplying Continental GT in the UK and some other European countries. .The company is also working on its customer deliveries in the US, Australia and Japan. But the company expects that the main growth from the developing markets of South America and South East Asia.  The company employed the Corbeta Group to distribute its products in Colombia later this year. The group will supply, market and service the Royal Enfield products. Eicher Motors is confident on cutting a niche in all markets in the mid-sized category in the next couple of years.