After making an entry in the ecommerce, IT and smartphone segment yet another Indian company sets record in the global automotive sector. A Harley has been the dream bike for many across the world but not many are aware of Royal Enfield, commonly referred to as the Indian Harley, built on the lines of a cruiser bike like Harley Davidson (HOG, Financial) is doing brisk business worldwide. Let us take a closer look at the bestselling Indian cruiser.
Royal Enfield
Royal Enfield, the motorcycle manufacturing company, which is a subsidiary of Eicher Motors Limited, is headquartered in Chennai, India. Besides its trademark motorcycle Royal Enfield Bullet, the company is famous for its mid-premium motorcycles with high capacity engines and typical thumping engine sounds.
Based In Redditch, Worcestershire, The Crown licensed the use of the brand name Royal Enfield in 1890, under which the Enfield Cycle Company made lawnmowers, bicycles, motorcycles and stationary engines. The company was shut in 1971. In 1956, Enfield of India started acquiring licensed UK components and putting together Bullet motorcycles. In 1995 Eicher Motors Limited purchased Enfield Motors Limited, along with the rights to use the Royal Enfield name.
Currently, Royal Enfield is the oldest motorcycle brand in the world, which is still in production and the Bullet model is the longest running motorcycle in the history of motorcycle production.
Royal Enfield sales surpass Harley- Davidson
Royal Enfield sales were steadily growing over the past few years, but it took a huge leap in 2014 with more than 3 lakh sales. The sales of Royal Enfield outnumbered the sales of Milwaukee-born, motorcycle giant, Harley Davidson. Harley Davidson, who is known for making motorcycles with engine displacements over 700cc, sold a total of 2.67 lakh bikes in 2014. Globally, Enfield and Harley don’t compete with each other, but the sales graph is definitely note-worthy in India, where they both are foremost market share holders in the heavy bike segment.
The primary factor behind the increase in RE's global market share is its affordability. In India the most expensive Royal Enfield bike, the Continental GT, is priced at Rs. 2 lakh, whereas the least expensive Harley- Davidson bike, the Street 750, is priced at Rs. 5 lakh. There is no denying that currently, Harley is unquestionably ahead in the profit game in comparison to Royal Enfield, since the premium on HD bikes is much higher than that of RE bikes.
But Royal Enfield has emerged a winner in the sales department for 2014 with overwhelming numbers. RE reported sales of 28,634 units which included domestic wholesale as well as exports in December, 2014 – a record growth of 48% over the same time in 2013.
Better times ahead?
Royal Enfield showed no signs of slowing down with the onset of 2015. The Chennai-based bike maker has continued its good run in January 2015, with a reported 43% leap in total sales. All together RE sold 28,927 units in January 2015, as against 20,232 units in the corresponding month in 2014. The RE motorcycles with engine capacity of up to 350cc reported sales of 25, 799 units against 17, 639 units in January 2014, which is a 46% hike. In contrast, motorcycles with engine capacity exceeding 350cc sold only 3,128 units against 2, 593 units in January 2014, which is 21% more than January 2014.
There has been slight restructuring in Eicher Motors Ltd as well, which has appointed Rudratej ‘Rudy’ Singh, as the President of Royal Enfield. Singh will be accountable for developing thought leadership for the brand and spearheading commercial business for Royal Enfield. This will include global brand and marketing, sales and after sales, new product strategy, developing and making new business prospects such as accessories, clothing, and other merchandises.
To further grow their hold in the market, Royal Enfield is now planning to construct a sturdy network in the United States and Western Europe. Royal Enfield has experienced stupendous growth in the past few years, and looking at their growth trend one can safely assume that currently they are in the right track.
