Tuesday, December 24, 2013

Royal Enfield to Enter Other Markets and Ensure High Growth

After seeing a substantial growth of over 50 per cent in sales, the profit margins of Royal Enfield have increased to 16.5 per cent from that of 13 per cent in the last year. The growing numbers have attracted a lot of people to look into the mid-size category of motorcycles.

Royal-Enfield-to-expand-into-newer-markets

" We will enter countries where we can lead the market and grow ", stated Siddhartha Lal, the Managing Director and Chief Executive Officer of Eicher Motors ( Note:  Eicher Motors are the parent company of Royal Enfield Motorcycles ). In an exclusive interview with Business Standard, Mr. Lal has let out his company's strategy and plans.


Here is the broad overview :
  1. Royal Enfield will focus on creating and improving the mid-size motorcycle market in India.
  2. New products and platforms will be developed.
  3. Distribution will be worked upon to ensure that the distinctive brand identity is retained.
  4. Inroads will be made into newer markets.

Royal-Enfield-to-expand-into-newer-markets

Presently Royal Enfield holds 95 per cent share of the market but the Mr Lal says that it might not be the same in the future as there are competitions that are going to emerge soon. Triumph and Harley who are presently attracted and are working for motorcycles in this class, the CEO says that he will be well satisfied at least 60-70 per cent of the share after the newer brands make a landing.

Source - Business Standard