Royal Enfield, which accrues nearly Rs350 crore out of Rs2000 crore turnover to Eicher Motors, is directing its track to the export zone- Latin American parts like Brazil, Columbia and Argentina. Russia and UAE too comes under the purview, in addition to the current deals in the US, Europe, Australia, Japan, and New Zealand. The proposed export market is earmarked for an increase of the market share by the current 10-15% to 25-30% by 2013, said the company’s GM for sales and marketing.
The company’s target growth for 2010 is 15%, as the growth of the past 3 years stood at 18%. The bikes are illuminated to the high-disposable income segment in India for an assured ‘lifestyle positioning’. The platform of Royal Enfield has 350cc to 500cc engines and there is a balanced 50:50 share in the rural and urban market, said the GM. The current production of 50000 units from the Chennai plant will be doubled in 2012-13 with an investment of Rs65 crore. For the first time in its designing, Eicher Motors has crafted the technique of combining the engine and gear box into a single unit (as in Thunderbird), which reduced 15% mutation of parts in the vehicle. Enhanced fuel efficiency and acceleration is also there.
The company is slating the increase in production –from the current 50000 units to 1lakh – by 2013. This will involve Rs65crore investment in the Chennai plant. The company is not bothered about the decline in the government deal -2%- and there is a scope in the concluding year- 50000 units- against 43298 units in the last year. There are two new models –Classic 350 and Classic 500- fitted with new engines, both costing @Rs 1 lakh. New arrivals with 800cc and 1000cc are in the offing in the future.