On the back of a 25 per cent increase in international sales, Royal Enfield is stepping up efforts to develop models in the 250 cc-750 cc range specifically targeted at markets outside India, especially the US and the UK.
Siddhartha Lal, MD and chief executive officer of Eicher Motors Ltd, which owns Royal Enfield, said that the company’s target audience in these markets would be bikers who want to move over from heavier high-end bikes to those in the mid range as an additional option.
“With global consumers in mind, we are working on multiple platforms to develop new models,” Lal said.
The company sold 4,400 high-end motorcycles in the global markets, which was a growth of 25 per cent over 2012. During the same period, motorcycles sales in the domestic market grew by 55 per cent to 178,121 units.
Lal said that they would be entirely focused on the mid-sized motorcycle segment (250 cc-750 cc) over the next five to seven years and would essentially target the 50 plus age group riders in the international markets.
Eicher has also announced plans to invest Rs 600 crore in two years to ramp up production capacity of its motorcycle division Royal Enfield.
Royal Enfield is looking to complete work at its Oragadam facility in the next two years thereby taking the total capacity across the two plants to over 5,00,000 units annually by 2016. The investment will go into capacity expansion, improving research and development (R&D) infrastructure and adding new products.
Meanwhile, Eicher Motors’ stock on Thursday surged 9.16 per cent on the BSE to close at Rs 4,825.20, after it posted a 10.6 per cent rise in net profit for the year ending December. The company follows a January-December quarter.