Driven by its successful entry into Colombia a year ago, Royal Enfield has decided to enter newer markets such as Brazil, Middle East and ASEAN countries, said Siddhartha Lal, CEO and managing director, Eicher Motors, which owns Royal Enfield.
The iconic bike maker, which just entered into Thailand and Indonesia, sees possibilities of setting up assembly plants or contract manufacturing units going forward in these two countries owing to high import duties on CBU models.
In a conference call soon after announcing the company’s quarterly results, Siddhartha Lal said: “Though exports are miniscule as compared to domestic sales, we see a huge opportunity for mid-range bikes (250cc to 750cc) in a number of countries which have not been penetrated by any player.” Exports grew 33% in 2015 to 8,285 units.
“While we made our presence felt in US, UK and Europe, we see LA and ME as markets for our entry. In Bangkok we will soon open a dealership. We will work out a strategy to enter the Brazilian market, considered to be another strong market in LA for us to enter in a big way.”
Q4 net profit up 97.5%
Royal Enfield, part of the Eicher Motors, has reported a 97.5% year-on-year growth in net profit for the quarter ended December.
The sharp growth in net profit has been due to a 50% growth in domestic sales to more than 126,000 units in the quarter, the company said. It registered a net profit of R245 crore during the quarter under review as compared to R124.1 crore in the same quarter last fiscal.