Zee Media Bureau
Panaji: Royal Enfield, a part of the Eicher Motors has expanded its motorcycle range in the country with the launch of 535 cc Continental GT.
The bike has been priced at Rs 2.05 lakh (on-road Delhi) and Rs 2.15 lakh (on-road, Mumbai).
The company, which has started deliveries of Continental GT in the UK and some other European countries, believes that the growth will come from the developing markets.
Since the launch of Continental GT in the UK, the company has now started delivering the motorcycle in some of the larger European countries as well.
Royal Enfield is eyeing various global markets, including Latin America and South East Asia to grow its international business, as it aims to become a significant player in the mid sized motorcycle segment in the world.
"We believe the mid-sized motorcycle segment is between 250cc and 750 cc, so that's the space we want to play in as Royal Enfield. We believe that this market is totally under-served," Eicher Motors MD and CEO Siddhartha Lal told reporters.
There is traction in this segment and it is open for growth in all the developing markets-Latin America, South East Asia in particular and other markets as well, he added.
Globally, the mid-sized motorcycle segment is estimated to be around 8 lakh units per annum. In India the size of the segment is in the range of 2 lakh units, he added.
"We believe the market is going to move up from small bikes to mid-segment...Nobody is focusing on this segment, so that is the market we want to get into at global level," Lal said.
The launch of Continental GT in UK in September is the point when the company shifted its attention to global motorcycling, he added.
"Now, we don't just want to participate in the number of countries...Our ambition is very clear that we are going to make strategic inroads into the international markets, Lal said.
Currently, Royal Enfield exports only 3 per cent of its total production across its two manufacturing facilities in Tamil Nadu.
The company, which sells Bullet, Classic and Thunderbird models, is also looking at enhancing its production capacity to meet up the demand. Some of the models currently have a waiting period of over 6 months.
"We are going to close the year at 1.75 lakh units. In 2014, the capacity will be up to 2.5 lakh units but already we are witnessing demand exceeding that. We are now trying to find ways to even get over this number," Lal said.
Royal Enfield has grown over 50 per cent year on year for the last three years, he added.
With PTI Inputs
First Published: Thursday, November 28, 2013, 11:29