In a move that’s making waves in the world of two-wheelers, Royal Enfield, a division of Eicher Motors Ltd. (EML), has taken its iconic Indian motorcycles to the shores of Panama. This exciting venture was officially inaugurated by India’s Ambassador to Panama, Dr. Sumit Seth, who commended the brand’s independent journey to reach Panama.
Confirming this news to Financial Express Online, Ambassador Seth said: “It is heartening to see that an Iconic Indian Brand has reached Panama purely on its own strength.”
Royal Enfield is not just any newcomer to the market; it is competing with other well-established motorcycle brands that have dominated the region for nearly three decades. Their entry into Panama is part of a broader international strategy outlined in their 2022-23 annual report. The company aims to expand its international footprint by introducing new products, growing its retail network, and strengthening global assembly capabilities to reach markets more swiftly.
In the annual report of 2022-23, Siddhartha Lal, the Managing Director and CEO of Eicher Motors Ltd., expressed the company’s significant progress in the international arena. He mentioned that Royal Enfield had surpassed the milestone of shipping over 100,000 units internationally in 2022-23, signifying a positive turning point for the brand’s global presence.
The Americas, encompassing both North and South America, have emerged as vital markets for Royal Enfield over the past three fiscal years, experiencing fourfold growth. Notably, sales of Royal Enfield motorcycles in the American region have witnessed a remarkable 44% year-on-year growth.
Presence in Americas
Royal Enfield’s foothold in the Americas includes an extensive network of 88 exclusive stores and 366 multi-brand outlets. In FY 2022-23, Royal Enfield’s market share in the middleweight motorcycle segment reached 7.8%. Within the region, North America and Latin America (LatAm) have seen market shares of 7.8% and 7.9%, respectively.
Demonstrating their commitment to the region, Royal Enfield has established three Completely Knocked Down (CKD) assembly facilities in the last three years. The first facility was inaugurated in Argentina in partnership with a local partner in September 2020. The second assembly unit, based in Colombia, commenced operations in October 2021. In FY 2022-23, Royal Enfield initiated operations of its CKD assembly unit in Brazil.
In addition to expanding their manufacturing capabilities, Royal Enfield has actively engaged with the community in the region. They’ve organized events such as the Tour of Mexico, the opening of the Royal Enfield Academy in Colombia, and the celebration of the 3rd Anniversary of the Royal Women Riders Group in Brazil. The company also conducted Dealer demo tour Stops in the United States to connect with enthusiasts.
One of the standout models in their lineup is the Himalayan, which enjoys immense popularity. It’s estimated that around 160 units of this model will be assembled monthly in Colombia. While most of the motorcycle components are sourced from India, some parts are procured from local suppliers in Colombia.
Royal Enfield initially set its wheels in Colombia in 2014, and from January 2015 to July 2021, it had sold 7,348 motorcycles in the country. With approximately 15 exclusive outlets and 39 service centers in Colombia, it’s evident that the brand has taken root and continues to grow in this promising market.
In the broader LatAm market, Royal Enfield’s presence extends beyond Colombia to Argentina and Brazil and now Panama, showcasing its commitment to becoming a formidable player in the motorcycle industry across the region.
