Royal Enfield to expand sales & service reach in India with 800 dealers in 600 towns

Praveen

Praveen M, Engineer-turned-motorcycle journalist. I'm a sucker for cruising down the highways, and twisties in the hills.

Royal Enfield is in the midst of an aggressive expansion plan according to its annual report. The brand has sold 6,66,493 units in FY 2016-17 and enjoys a 95% market share in the mid-size motorcycle segment (250 cc – 750 cc) in India.

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With the third factory coming online this month, RE aims to produce 8,25,000 motorcycles in the financial year 2017-18.

According to the statement in the document, Royal Enfield has 675 dealers across the country and plans to expand to 800 dealers covering about 600 towns. The production is also set to increase thanks to the addition of a third plant at Vallam Vadagal in Tamil Nadu. The commercial production from the new plant is slated to commence this month and the brand aims to produce 8,25,000 motorcycles in the financial year 2017-18.

Also read: Royal Enfield Continental GT 750 Continues Testing

The report also states that two technical centres will be set up in the UK and India for enabling new product development. Royal Enfield already has a technical centre in Leicester, UK and in Chennai, Tamil Nadu. The other technology centre in Chennai, will house both engineering and design teams under one roof, and will be equipped with state-of-the-art engine, chassis and component test equipment. The engineering, test and industrial design in the centre is slated to commence in September 2018, and final completion with full occupancy by April 2019.

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RE CEO Siddhartha Lal has confirmed larger displacement versions of existing bikes to take the brand further upmarket.

The Royal Enfield Continental GT 750, the company’s next model, is expected to emerge this year, as a part of the brand’s plan to launch a new motorcycle every year till 2018. The new bike will lock horns with Harley-Davidson Street 750. Royal Enfield has also confirmed that it would not sell bikes above the 750 cc segment.

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