Main two-wheeler maker Royal Enfield Motors, a part of Eicher Motors, mentioned the corporate was making ready to fulfill rising demand in home and export markets as issues with the provides have diminished.
Whereas the corporate has a powerful backlog, it just lately launched a brand new Hunter 350 bike to nice response. The corporate has produced greater than 50,000 items of Hunter since its introduction in August. “We have now a wholesome backlog for Hunter. For the reason that launch of the bike, Hunter has acquired an impressive response, and on daily basis the quantity is rising,” mentioned B Govindarajan, CEO of Royal Enfield Motors. exercise space.
The Hunter 350 was launched to enchantment to a brand new group of riders searching for a lighter bike at a lovely worth.
Govindarajan explains that each product launch relies on suggestions from clients throughout India. “We’re nonetheless exploring whether or not there’s adjacency to every product to fulfill some particular purchaser necessities,” he added.
Provide chain stability
In the meantime, Royal Enfield, which operates three factories close to Chennai, says that total the semiconductor scarcity downside is underneath management and not a headwind. “Provide chain stability is coming progressively and we’re additionally accelerating,” Govindarajan says.
Royal Enfield produces roughly 3,100 items per day. Nevertheless, with some debottlenecking, it might enhance the capability to three,500-3,600 items per day, though its whole capability is 4,000 items per day. The corporate additionally strives to supply flexibility within the manufacturing course of and provide chain areas to supply the required fashions in report time.
Govindarajan mentioned the corporate has began delivery the brand new Hunter 350 to the European market and can quickly be delivery to Asia-Pacific and North America markets.
With a powerful product lineup, Royal Enfield has skilled 4x development in worldwide markets over the previous three years. In most markets the place it operates, the corporate strives for a ten% market share within the mid-segment (250cc-650cc) motorbike market, which affords an addressable market dimension of roughly a million items (worldwide) for the corporate.
“In a market like North America, Meteor 350 has been an impressive success and it’s a prime promoting product within the phase. Outdoors of India there’s big potential for Royal Enfield to work and develop. capitalize,” he says.
Royal Enfield has over 2,100 retailers throughout India which embrace full format shops in addition to smaller studio shops. It has greater than 840 contact factors in worldwide markets.