Royal Enfield Motors continues to see its bike sales zoom even as its leadership position is expected to be challenged by upcoming competition.
The company has been a leader in the mid-size category (above 250cc to 650 cc) of superbike market in the country. However, many new brands, mostly global players, have stormed the fledgling superbike market in India, and have been aggressively working on creating awareness and building their brands here. The mid-size category has been targeted by many players that include DSK Hyosung and TVS-BMW joint venture, among others, and a range of new models are to be rolled out in the coming quarters.
The Chennai-headquartered bike maker has been sustaining its strong sales growth curve as the appetite for leisure and cruiser bikes is on the rise in the country. During January-March 2014, the company has reported 85 per cent growth in volumes at 62,827 units when compared to 33,933 units in a year-ago period. After 57 per cent rise in 2013 sales at 1.78 lakh units, it has also set an ambitious production target of 2.8 lakh units for 2014.
The capacity ramp up at its new factory near Chennai, which was commissioned about a year ago, has helped the company not only meet the additional demand but also cut waiting period for its bikes to about 3-4 months from several months earlier. It recently announced an investment of Rs.600 crore towards capacity expansion and development new product platforms.
Analysts point out that strong brand equity due to its rich global heritage and product offerings at attractive price points, among others, are Royal Enfield’s major strengths and the company would remain a strong player in the segment.