At a recent investor summit hosted by Morgan Stanley, Eicher Motors who own Royal Enfield said they have no intention of going down the value chain to lower the capacity of its iconic Royal Enfield motorcycles.
This clearly an agenda to move up the ladder in terms of capacity and not compete in the mass market segment of 150cc and below motorcycles. It said that it is focussed on customers who are looking for motorcycles above the 150cc capacities.
They feel electric bikes will not work in India and will not venture into this segment as well.
Eicher Motors sales have mainly been driven by Royal Enfield and has maintained that it will achieve the volume target of 6.75 lakh units for the period from 2016-17 and increase the units to 9 lakh by 2018-19.
As per the Morgan Stanley Summit, the waiting period for the Royal Enfield Classic 350 and the newly launched Himalayan command around 3-4 months, however, the remaining models' waiting period has come down.
On the whole, Eicher Motors said, they have a waiting of 3 months as an average, they maintained that new orders do exceed its deliveries, even though it's just marginal. As for the dealers of Royal Enfield, the same-store continue to grow at 15 percent year on year.
Currently, Royal Enfield dealers run up to 500 dealers, the company is looking to add another 100 to it. Royal Enfield sells different models like Desert Storm, Classic, Thunderbird, Standard, Himalayan, and Cafe Racer inspired, Continental GT. The Royal Enfield Classic, Standard, and Thunderbird come in 350cc and 500cc. As for the Desert Storm, Continental GT and Himalayan come in 500cc, 525cc and 410cc respectively.