Moneycontrol
Nov 14, 2017 04:57 PM IST | Source: Moneycontrol.com

Royal Enfield won’t launch mass market products till late 2019

Leisure bike specialist Royal Enfield will concentrate on the two big upcoming launches – Interceptor and Continental GT – and will not have a new product launch till late 2019.

Swaraj Baggonkar @swarajsb
 
 
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Leisure bike specialist Royal Enfield will concentrate on the two big upcoming launches – Interceptor and Continental GT – and will not have a new product launch till late 2019.

Showcased at the EICMA event in Milan, Italy recently the two bikes are the biggest by Royal Enfield till date and are aimed more for markets outside India.

These new 650cc bikes will be launched in the first quarter of FY18 in one of the western markets before launching them in India later next year. Much of Royal Enfield’s efforts will be going into making the launch a success in these export markets as well as managing their production to meet delivery schedules.

Siddhartha Lal, Managing Director and Chief Executive Officer, Eicher Motors, said, “The big launches are the twin bikes Interceptor and Continental GT. The next wave of, let’s say, all new products will be closer to Pre BS-VI date, may be six months before 2020 deadline of April 1.”

However, Royal Enfield, which saw a 22 percent jump in sales in the second quarter to 2.02 lakh, will have new variants or refreshed versions of existing products to keep the buyer excited during the period.

“Meanwhile, we will have variants from all the platforms and models. From single cylinder and twin cylinder it’s all on the cards but no new products closer to 2020. In the interim period there may be other variants coming out but no full new platform till closer to 2020,” added Lal.

During the first half of the year Royal Enfield saw a volume jump of 23 percent to 3.86 lakh units as compared to 3.13 lakh units sold in the same period last year. More than half of those volumes came from just the Classic 350.

Company officials said that the company is on track to achieve the 8.25 lakh sales target for the year and is confident of selling 4.39 lakh units in the remaining part of the year.

Further, the company had declared in its annual report of last year that it would spend Rs 800 crore on the motorcycle business and Rs 450 crore on its commercial vehicle business next financial year. This investment is largely on track, Lal said.

“Abut 75,000-80,000 production per month is what we have planned for by end of this year. We don’t have any plans for fresh capacity next year. We would be coming out with a more detailed plan shortly,” added Lal.
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