As we are all aware, Royal Enfield has ambitious plans to enter the electric two-wheeler segment, and they are currently in the initial stages of developing a new electric motorcycle. According to Siddhartha Lal, the Managing Director & CEO of Eicher Motors (Royal Enfield’s parent company), the company is actively testing the prototype, and the final version is expected to hit Indian roads within the next two years. To expedite the development process, Royal Enfield has established a dedicated team to handle the commercial aspects of its EV business. Read: 3 New Royal Enfield Bikes In the Works – Triumph, Harley Rivals
In order to achieve its goals in the electric two-wheeler market, Royal Enfield has committed to investing approximately Rs 1,000 crore in developing future products and creating sales infrastructure for electric vehicles. This investment is planned to take place during the time period of 2023-24. The company aims to reach a production capacity of 1.5 lakh electric units and is determined to execute this plan with full speed and efficiency.
Despite the intensifying competition in the midsize motorcycle segment, where Royal Enfield currently holds a significant 90% market share, the company remains unfazed. Competitors such as Triumph Speed 400 and Harley-Davidson X440 have entered the market, co-developed with Bajaj Auto and Hero MotoCorp, respectively. Siddhartha Lal confidently stated that Royal Enfield is several steps ahead of its rivals and is poised to retain around 80% market share in the medium to long term.
He also predicts that the midsize motorcycle market will experience significant growth with the arrival of new competitors, expecting it to expand from 1 million units to approximately 1.5 to 2 million units in the coming decade. Royal Enfield’s recent performance is quite promising, as evidenced by a 50% growth in the first quarter of 2023, with a net profit of Rs 918 crore compared to Rs 611 crore in the same period of the previous financial year.
