New Delhi: Mid-sized motorcycle maker Royal Enfield plans to launch at least 28 new models in the next seven years, with one new bike to be introduced every quarter as it seeks to strengthen its position both in domestic and international markets, according to a top company official.
The company is also planning to set up an assembly unit in Thailand in the next 6-12 months followed by Brazil in the near future.
“We have now got a product plan for the next five to seven years. We are looking at launching a new model almost every quarter and I am not even talking variants and colour options kind of stuff…28 models at least (in the next seven years) that’s the bare minimum,” Royal Enfield CEO Vinod K Dasari said.
He further said, “All these (new models) will play in the mid-segment – 250cc to 750 cc. That’s our focus area…and we will continue to strengthen it by bringing in evocative, accessible, and truly global line of products.”
Dasari did not comment on the investments on these new products saying the company’s investments “will be in several hundred crores on new products, new technologies like electric vehicles, digital solutions and so on.”
“We have adequate production capacity for the next 2 to 3 years, and therefore, a significant chunk of our investments will be directed towards the development of new products, technology, and capability enhancement, and global expansion,” he said.
When asked about growth prospects in the domestic market, he said, this year it has to be seen on a month-on-month basis.
“The first four-five months were a washout due to COVID-19. Now our booking levels are better than pre-COVID-19-level. October was almost as good as last October,” he said.
Even though the company has bookings for more than one month, the total pipeline inventory, which is what’s there in the factory, in trucks, depot and dealers all together, is for 15-20 days, he said adding “We are not stuffing the pipeline.”
Commenting on the company’s global performance, he said, “Our growth in the international markets has been phenomenal over the last few years and we are excited about further expanding our presence globally. We have recently set up a new assembly unit in Argentina and have plans to set up an assembly unit in Thailand in the next 6 to 12 months followed by Brazil in the near future.”
He said the company has been doing “really well” in the international markets and year-to-date sales are higher than last year and Royal Enfield’s “Interceptor model continues to be the best selling model for the past one year” in the UK.
On the prospects of competition hotting up in the mid-sized motorcycle segment in India in the wake of Hero MotoCorp-Harley Davidson partnership, Honda entering cruiser segment with its H’ness CB350 and Bajaj-Triumph products slated to hit the market next fiscal, Dasari said it will help expand the market with more attention coming towards the mid-sized segment.