Royal Enfield’s presence in the global motorcycle market has also witnessed growth over the last 5-6 years with newer models introduced that cater to developed foreign markets. With the launch of its first 650 Twins — Interceptor and Continental GT — in 2018, Royal Enfield became a known face in the US market. Since then, Enfield has multiple new models and the Chennai-based bikemaker continues large volumes of its motorcycles to North America.
However, things became tricky for all auto exporters to the US market when US President Donald Trump introduced higher reciprocal tariffs on all imported goods. However, the Indian bikemaker found a clever way to deal with it. According to a new Bloomberg report, Royal Enfield frontloaded its exports to the US before President Donald Trump targeted automobile imports, hoping to keep prices stable and win customers seeking affordable riders.
Eicher Motors Ltd., the parent company of Royal Enfield—which was originally established in the UK in the early 20th century— shipped nearly 9,000 motorcycles to the U.S. shortly before former President Trump announced a 25% tariff on automobile and auto parts imports on March 26. This is a significant increase compared to the company’s usual annual sales of around 6,000 units in North America, according to sources familiar with the matter, who requested anonymity due to confidentiality policies.
The company, which currently routes its motorcycle shipments to Canada through the U.S., is also evaluating the possibility of relocating inventory to a warehouse in Canada to mitigate the impact of potential trade disruptions resulting from the tariff announcement, the sources added. Eicher Motors did not respond to an emailed request for comment regarding the stockpiling strategy in the U.S.
In response to escalating trade tensions and policy uncertainty, several global vehicle exporters have adopted varying strategies. Mitsubishi Motors Corp. and Audi halted their U.S. deliveries in April, while Nissan Motor Co. announced it would discontinue sales of two Infiniti SUV models manufactured in Mexico for the U.S. market.
Pause in reciprocal tariffs
British luxury automaker Jaguar Land Rover, which had previously suspended shipments to the U.S. in April, resumed exports this month after the UK and U.S. reached a free trade agreement.
While former President Trump paused the implementation of higher reciprocal tariffs slated for April 2, a 10% tariff on most trading partners remains in effect. Additionally, the 25% duty on steel, aluminum derivatives, automobiles, and auto parts continues to apply.
Accelerating exports carries some risk for manufacturers like Eicher Motors, particularly if tariffs are unexpectedly lifted. However, it also presents a strategic opportunity to strengthen its presence in the U.S. market, especially as demand in Europe remains sluggish. On Wednesday, Eicher’s stock declined by as much as 0.8% during trading in Mumbai, reducing its year-to-date gains to 11.2%..
Trump’s obsession with America first
Eicher anticipates that tariff-related disruptions will drive a shift in consumer demand in the U.S. toward more affordable offerings from its Royal Enfield lineup—challenging a market traditionally dominated by Harley-Davidson Inc.
“Today’s motorcycle buyers in America are moving away from the traditional preference for large cruisers and are gravitating toward more accessible, mid-sized premium bikes,” said B. Govindarajan, Eicher’s Managing Director, in a statement from late April. “This is precisely the segment where Royal Enfield has been steadily strengthening its presence with models like the Meteor and Hunter.”
Royal Enfield now holds nearly 8% of the middleweight motorcycle market in North America. Its exports to the U.S. include popular models such as the Classic 350, Hunter, Meteor, Scram 411, Super Meteor, and Shotgun.
