Rising demand for bikes sets Enfield on fast track to expansion

Speaking to DTNext, Shaji Koshy, Head, Sales, Spares and Services, Royal Enfield, says, “If you consider the 350cc plus motorcycle category, we already have 95 pc market share here. Royal Enfield, by itself has contributed to the growth of this segment in India in a major way. Our order books are very strong and our primary challenge is to fulfil our customer’s constantly high demands. Our aim is to be able to touch the manufacturing capacity mark of 9 lakh vehicles annually by 2018-19. The demand is at such that there is a waiting period of about 2 to 3 months on average for acquiring a signature Bullet.” 

He goes on to add, “For serving the purpose of the planned expansion in capacity, a plant is already being readied and is under construction in Chennai. The company is also setting up a technical centre in Leicestershire in UK and one in Chennai, which should be ready within a year. An investment of Rs 600 crore has been earmarked for product development by the company, which was announced last year.”

In March this year, Royal Enfield, reported a 17 per cent jump in total sales at 60,113 units. The two-wheeler manufacturer had sold 51,320 units in March 2016. In the entire fiscal, the company had sold 6,66,490 units as against 5,08,154 units in the financial year ended March 2016, up 31 per cent. During the month under review, exports grew by 24 per cent to 1,564 units as compared to 1,261 units in March 2016.  The Classic 350 model, is as usual the top seller in Royal Enfield’s portfolio, Koshy says. 

The company prides itself on being one of the few auto majors in the country that shares a relationship with its customers bordering on a brotherhood of sorts. Koshy tells us, “The annual Rider Mania which takes place in Goa, witnessed an attendance of more than 6,000 customers. Similarly, the annual Himalayan Odyssey and Tour of Nepal, which was just flagged off last week are events that brings together a huge community of riders. As a company, our big focus is on customer engagement. Every month, we ride with our customers, and this month, we flagged off the One Ride, which covers 14 countries and 23 cities.”

Koshy says, “Every showroom that we open is equipped with a service centre. The showrooms are designed as lifestyle experience centres, as they sell a range of branded premium accessories too. Royal Enfield has as many as 675 showrooms across the country and the company added around 45 dealerships in the last three months alone. New dealerships have been opened in Erode, Tirupur and Coimbatore over the last one week.