Royal Enfield has started its operations in the fourth largest two-wheeler market in the world, Brazil, with the introduction of three motorcycles - Bullet 500, Classic 500 and Continental GT. These models will be sold through a dealership in Sao Paulo. The company's first dealership in the country, Royal Enfield Brazil will also cater to after-sale services of the motorcycles. This is the second establishment the Indian motorcycle manufacturer has set up outside India after the United States of America.
"We are delighted to be formally entering Brazil and are able to offer our motorcycles to a whole new group of customers, that will enable us to realise our competitive potential in the fourth biggest motorcycle market in the world," Rudratej Singh, President, Royal Enfield said. According to the company, the Brazilian market is under-served, particularly in the mid-size motorcycle segment.
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The company already has its presence in Columbia, where it posted a CAGR (Compounded Annual Growth Rate) of 50 percent in the last six years. In FY 2016-17, the company sold a total of 6.6 lakh units and plans to increase its production capacity to roll out nine lakh units annually.
In India, the company is planning to introduce their first 750cc motorcycle, which will be developed by the Royal Enfield Technology Centre based in the UK. It is expected to generate around 50 hp of power and 60 Nm of torque.