Huge potential for growth in Europe: Royal Enfield CEO
The Chennai-headquartered firm, a part of Eicher Motors, currently sells bikes all across the continent and has a market share of around 8.5 per cent in the middle-weight motorcycle segment.
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MILAN: Royal Enfield is taking a slew of measures including accessing ways to enhance connection with the communities as it sees huge potential for growth in the market, according to a top company executive.
The Chennai-headquartered firm, a part of Eicher Motors, currently sells bikes all across the continent and has a market share of around 8.5 per cent in the middle-weight motorcycle segment.
On the sidelines of the annual EICMA motor show here, Royal Enfield CEO B Govindarajan said the company believes in replicating the success it enjoys in the Indian market in the middleweight segment in international markets as well.
“There is a huge potential for us to grow in this market (Europe) from our current market share of around 8.5 per cent...it’s very difficult for anyone to say how much it will grow (going ahead) but from here it can go only in one direction that growth year on year, “ he noted.
Govindarajan noted that the company is in the process of creating a market for its products in Europe. “All our products are Euro five now.. and now we are into the brand building exercise and working with the community and making the brand to be a full brand here,” he said.
Royal Enfield sells its bikes from around 600 multi-brand retail outlets across Europe and the number is expected to grow further, he noted.
The company currently has 20,000 strong riding community in the market which is expected to grow further going ahead, Govindarajan said.
He noted that the company is also evaluating having its own distribution network in various European countries as has been already done in the UK.
“In the UK, we have taken the distributorship and we are directly appointing dealers... We are also evaluating other markets in Europe and what sort of the method ... thereby we reach the consumers directly,” Govindarajan said The company aims to launch its first EV product in 2025.
With over 37 per cent CAGR for the last 5 years, the brand sales in international markets have surged 108 per cent in 2021-22.
