Royal Enfield positions its iconic 114 year-old brand in North America for market expansion
Royal Enfield announces wholly-owned subsidiary in North America
Royal Enfield, the fastest growing motorcycle brand in the world today announced its first wholly-owned subsidiary outside India, in North America. This strategic announcement is in line with Royal Enfield’s focused international thrust of leading and expanding the global mid-sized motorcycle segment (250-750cc), with North America representing a priority market for the company.
Royal Enfield is the oldest motorcycle brand in continuous production, with roots dating back to 1901 in Redditch, England. A division of publicly traded Eicher Motors Limited (EICHERMOT), its current product line-up in North America includes the iconic Bullet 500cc, Classic 500cc and the Continental GT 535cc cafe racer ranging from $4,995 to $5,995. Royal Enfield has been exporting motorcycles to North America for 15 years through an independent distributor.
“Royal Enfield has been growing at over 50% year-on-year for the last five years. The combination of an efficient and scalable business model and brand strength has given us our success in India. We have also grown the mid-size segment in India. We see a clear opportunity to be able to do this in the US as well as globally. North America is a key international market for Royal Enfield, with a rich history of riding enthusiasts. Given the lack of attractive options in the mid-size segment, we are well poised to fill the gap and serve potential customers at a close, intimate level by localizing our operations in North America”, said Mr. Rudratej Singh, President, Royal Enfield.
Mr. Siddhartha Lal, CEO, Royal Enfield said, “Our motorcycles are inspired by the classic bikes throughout motorcycling history, in form and in simplicity; and they capture the feeling of freedom, fun and responsiveness that riders were trying to achieve then, and brings it into the modern context. Royal Enfields are possibly the most engaging mid-size motorcycles out there. We use traditional craftsmanship and modern technology as a means to achieve the perfect balance between the rider, the machine and the terrain.”
The company’s regional office in Milwaukee, Wisconsin and the leadership team will be led by Rod Copes, President, Royal Enfield North America, responsible for managing its operation in the market including marketing, communications, sales, warranty, service, dealership development and finance. All manufacturing will continue to remain in Chennai, Tamil Nadu, India where Royal Enfield has been manufacturing since 1955. Global headquarters will continue to reside in Gurgaon, Haryana, India.
“In a post performance era where American riders are looking for machines that are easy to own and maintain, Royal Enfield offers evocative and unintimidating modern classic motorcycles, with timeless appeal. Royal Enfield’s first fully branded retail store in the United States will soon be launched in Milwaukee that will retail its entire product line-up of motorcycles and gear. Over the next 18 months we plan to launch several such stores in key metropolitan areas across the US. We are also focusing on building a strong independent dealer network that will maximize our brand awareness and sales.” said Rod Copes, President Royal Enfield North America.
“While Royal Enfield continues to strengthen its presence in the US and Canada, our current distributors, Classic Motor Works (CMW), located in Fairbault, MN will be transitioning out of distributing Royal Enfield motorcycles by the end of 2015” added Rod.
In 2014, Royal Enfield sold more than 300,000 motorcycles globally. Parent company, Eicher Motors Ltd., recorded its highest ever total revenue of $1.4 billion USD, with large contributions from the Royal Enfield business unit. In CY 2015 the company aims to produce 450,000 motorcycles to support its growth strategy globally.
About Royal Enfield:
The oldest motorcycle brand in continuous production, Royal Enfield made its first motorcycle in 1901. A division of Eicher Motors Limited, Royal Enfield has created the mid-size motorcycle segment in India with its unique and distinctive modern classic motorcycles. With its manufacturing base in Chennai, India, Royal Enfield is able to grow its production rapidly against a surge in demand for its motorcycles. With 50% growth every year for the last 5 years, Royal Enfield is fast becoming a very important player in the global mid-sized motorcycle market and is working towards re-inventing this space with motorcycles that are evocative and engaging and great fun to ride.
Royal Enfield’s global product line?up includes the Bullet and Classic with 500cc displacements; and the recently introduced Continental GT 535cc café racer. Royal Enfield operates through 16 company-operated stores and more than 400 dealers in all major cities and towns in India, and exports to over 50 countries across the world including the USA, Japan, UK, several European and Latin American countries, as well as the Middle East and South Asia.
Royal Enfield also organizes and supports many motorcycling events and rides on a global scale.