Chennai-based Royal Enfield is considering introducing a smaller and more affordable motorcycle to hold the fall in the market share, reports The Economic Times. The company has witnessed negative sales and reported a double-digit decline in the last four months. The new product from the company will reportedly arrive in the quarter-litre space and make the brand more accessible to buyers.
The 250 cc Royal Enfield motorcycle is currently being studied at the company’s India R&D centre. Apart from the quarter-litre bike, Royal Enfield is also planning to introduce a no-frills version of all its models along with a choice of personalisation via accessories. The no-frills version will carry a lower price tag to attract attention from potential buyers. All new models and variants would most likely go to international markets as well.
A spokesperson told the business website that accessibility has always been important for Royal Enfield. He said:
We will continue to focus our efforts on bringing classic, evocative and fun-to-ride motorcycles for our customers. We have persistently worked on keeping our motorcycles accessible, from the perspective of availability, ride experience, as well as ownership experience. We have a range of genuine motorcycle accessories that allow buyers to customise and personalise their motorcycles. We believe it is a core aspect of self-expression for our riders. We will continue to work towards making this experience more seamless for the customer.
Other steps taken by the Chennai-based two-wheeler brand to improve sales include the introduction of studio outlets that would be one-sixth the size of a typical Royal Enfield showroom. The studio stores would be set up in rural markets. The company plans to inaugurate 350 studio stores that would have 225 sqft of retail space along with 275 sqft of workshop area. Royal Enfield also plans to expand its regular format stores by 80 new dealerships in 2019.
Royal Enfield’s domestic sales have consistently dropped since the return of Jawa motorcycles in November 2018. The numbers dived for the seventh consecutive month in May (17% Y-o-Y). The exports, too, witnessed marginal fall in May 2019 after months of positive performance.
Besides the quarter-litre motorcycle and no-frills variants, Royal Enfield is working on its BS-VI compliant range of motorcycles. The company is also developing higher displacement motorcycles at its UK Technical Centre.
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