Royal Enfield Working On New Models To Tackle Harley Davidson and Triumph

Royal Enfield will bring three new models ranging between 350-450cc in the next year.

Royal Enfield is facing intense competition from global motorcycle brands such as Harley Davidson and Triumph in the midsize segment. However, the brand has taken several new model interventions in response to this competitive landscape. Royal Enfield plans to update its product lineup by introducing new models. 

Range of Models in Which Royal Enfield is Working

According to sources, the business is bolstering its 350-450cc market with 3 new products in less than a year. Apart from the all-new Bullet, internally coded J1B will be released in early September. After 6-8 weeks, Royal Enfield will release the all-new Himalayan K1G with a liquid-cooled engine.

Royal Enfield is also working on 440cc Scram D4K, which is expected to be released within a year to provide alternatives to prospective consumers. This brings Royal Enfield's lineup to more than a half-dozen distinct nameplates. A bobber version is also in the development stage under the Classic label.

Royal Enfield will offer four 350cc J-platform models Classic, Hunter, Meteor, and Bullet. Above that will come the Scram 440 and Himalayan 450, forming a strong lineup priced between Rs 1.5 lakh and Rs 2.5 lakh. The product line-up is working on the expansion of its models with the increasing competition from Triumph & Harley-Davidson.

Royal Enfield plans to increase its cubic capacity and expand its geographic reach to other markets worldwide. The R-platform 750cc bike, as well as the electric L-platform, should be available by 2025.

Future Plans of Royal Enfield

Royal Enfield has committed Rs. 1,000 crore in yearly capital for FY24, which will go not just into new products but also into capacity creation to ensure that no demand is lost due to a shortage of supplies. The firm has also purchased new land in Cheyyar, Tamil Nadu, on the boundaries of its current facility at Vallam Vadagal.

"We had a very great year, but I must tell you, that we have better plans, which we will see in time to come. And we have a very strong line-up of motorcycles for the year 2023-2024 and a robust plan of growth on the rebalance, which we have articulated," B Govind Rajan, CEO of Royal Enfield, told investors post FY23 earnings call.

Market Growth of Royal Enfield

Annually, around 1 million units of luxury bikes costing over Rs 1.5 lakh or 250cc and upwards are sold, with Royal Enfield holding a market share of more than 75%. The market share rises to 85-90% in the 350cc and higher engine category.

Although the overall market growth has remained in the single digits, the premium motorcycle segment, led by Royal Enfield, has experienced double-digit growth. Its recently released Hunter’s sales exceeded 1-1.5 lakh units and is warmly accepted in the market.

It must be acknowledged that the Hunter model has garnered the attention of younger buyers, but its popularity has affected sales of the Classic 350. It is Royal Enfield's primary source of volume growth for the past decade. The company will focus on promoting new models such as the Bullet, Himalayan, and Scram. It is to attract new customers and counter competitors like Harley-Davidson and Triumph. 

Don’t forget to check our latest news coverage on how Yamaha celebrated 25 years of the Iconic R1 Superbike!

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