Royal Enfield is one of the oldest bike manufacturers in the country and has been known for its premium bikes. Recently Royal Enfield added a number of bikes to its 350cc and 500cc bike portfolio. Soon after the launch the thump of the Royal Enfield echoed the streets; these were not only technologically advanced but also were modified to suit the riding choice of the common riders which added to the popularity of the bikes along with the same retro looks.
Even though the company does not face any direct competition from any other 2-wheeler manufacturer in India, it seems that’s just not enough. And there’s a good reason for the same, they are still missing out on the big volume market of 2500cc segment and the creamy segment in the range of 500cc to 800cc. Considering the fact, Royal Enfield has decided to add more bikes to these segments. The company is all-set to launch its Continental GT (Cafe Racer) bike soon.
The Continental GT will be powered by a 536cc motor and will be priced around INR 2.0 lakhs. The addition of bikes in the range of 250 to 300cc will put the Enfield in direct competition with manufacturers like Bajaj, KTM, Honda and Yamaha. Although in the higher range of 500 to 800cc is Enfield can still be the unbeaten king in the India market, also these bikes can face competition with other international brands in this segment.
The company also wants to increase their export number, which presently is a mere 3% of its total sales to upto 10% percent in coming years. In order to achieve this target the company has invested Rs. 150 crore in its Oragadam plant in Chennai. The new facility is equipped to make 150,000 units in a year which can go upto 250,000 units by the end of 2014. Royal Enfield exports its bikes to US and Europe and is also exploring markets like Africa and Latin America for its future products.
The company is very confident about its products, and is hoping to beat the projected sales target to approximately twice by the end of next year.
Source – MotorBeam