Royal Enfield has confirmed to launch a new motorcycle by this financial year and will be launching the new motorcycle early 2017.
The company said while announcing the Q2 earnings for this financial year, Siddhartha Lal MD of Eicher Motors which owns Royal Enfield said they will be launching something significant next year and they will have variants as well.
Mentioning about the product, he said the new product will be big for Royal Enfield and will come with variants.
He added that the Himalayan has performed really well and they were delighted with its performance and it is growing in numbers.
At the company's level, this financial year, they will be investing nearly Rs 600 crore and a large chunk of it will be towards the third plant coming up in Vallam Vadagal on the outskirts of Chennai which will be operational by September 2017.
In the next financial year, FY-19, Royal Enfield will have a capacity of churning out 900,000 units with the three manufacturing plants, all in the outskirts of Chennai.
Lal said, at the end of September ending Q2, the company reported the best ever earnings at Rs 1,981 crore that's an increase of 35 percent with consolidated profit tax of Rs 413 crore and the highest ever EBITDA margin of 30.9 percent.
Royal Enfield commands the 250cc market and above market with 95 percent share and the company feels there is major competition from large foreign brands as they sell limited volumes.
While many homegrown players are foraying into the same segment and price point, Royal Enfield views it very differently.
As for the global expansion, Royal Enfield will be expanding its footprint both in the developed and developing markets.
The company plans to open 15-20 new stores in Europe in 2017 and will be looking to build in presence in Indonesia, Colombia and Thailand.