Royal Enfield in competition with other brands in Colombia: Mauricio Salazar Arango

Royal Enfield has been present in that country since 2014 and between January 2015-July 2021, the company has sold 7,348 motorcycles.

By:September 6, 2021 4:44 PM

Royal Enfield is the latest player in the two-wheeler market in Colombia and is in competition with other brands that have been around for more than three decades. The motorcycles are being assembled in Colombia in collaboration with Grupo Corbeta in Medellín. The Himalayan model of the motorcycle is very popular and it is estimated that around 160 units of this model will be assembled on a monthly basis. Most of the parts in the motorcycle are from India; however, some components are being sourced from local suppliers in that country. Royal Enfield has been present in that country since 2014. According to reports, between January 2015-July 2021, the multinational company has sold 7,348 motorcycles.

There are around 15 exclusive outlets in that country and 39 service centers. In the LatAm market, Colombia is considered to be one of the important markets and has a great growth potential. This brand of motorcycle is also present in Argentina, and Brazil in the region. Mr Mauricio Salazar Arango, Country Manager, Royal Enfield – Colombia, discusses with Huma Siddiqui about Royal Enfield’s presence in the South American nation. Following are excerpts:

What is the market share of motorcycles in Colombia? And what is the share of Royal Enfield?

The total motorcycle market (2 wheelers) in Colombia in 2020 was 517.213 units, and the midsize segment, where Royal Enfield is playing: 25.009 units. Royal Enfield has 5 percent of Market Share in the midsize segment. This is very important having in mind that Royal Enfield is the latest player to come to Colombia, and we are competing with brands that have been in Colombia for more than 30 years. Also most of the competitors in the midsize segment assemble all their models in Colombia, which puts them in a more competitive position in terms of prices. That’s why we firmly decided to start assembling motorcycles in Colombia, to be more competitive and strongly start gaining market share in the coming years.

Are motorcycles being produced in Colombia?

We ship the motorcycles in CKD (Complete Knockdown Condition) conditions from India, this means instead of buying a completely built-up motorcycle we are bringing the parts to locally assemble the bike here in Colombia. But also, in order to meet the regulations and support the local economy and workforce, we are also working with local vendors and suppliers to do some components locally.

Where are the parts coming from?

The imported parts (CKD kits) are coming from Chennai, India. And the local components are being developed in Medellín, Bogotá, Pereira and Cali.

Watch Video | 2021 Royal Enfield Classic 350 Review:

Which model of the motorcycle is popular?

Our two best-selling models are the Himalayan 411cc and the recently launched Meteor 350cc. Both models represent more than 75 percent of our current sales in Colombia. That is why we started the assembly project with the Himalayan and we expect to start the same process for the Meteor 350cc soon. Also in the pipeline, we have new models to come, which will be also assembled in Colombia.

Are these motorcycles being sold outside Colombia? If yes, which countries in the region?

As Royal Enfield, we have a presence in 10 countries in LatAm, but we serve each market directly from India, most of them with completely built-up motorcycles (CBU conditions). All the motorcycles assembled in Colombia will be only for domestic use, and as of now, we have not thought of exporting from Colombia to other markets in the Region. This is a door we have not explored yet, but it does not mean we could not explore in the future.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Latest Express Mobility News