Royal Enfield is an iconic brand and long after the UK company went down under the onslaught of Japanese manufacturers, not only is the brand is alive and kicking in India but also, it is the brand that has made many generations of India feel 'Macho'. Anamit Sen asked the Chief Executive Officer of Royal Enfield, Venki Padmanabhan (Dr Venki), a few questions on what makes the brand and the bikes tick. This is what he said...
Q: What was 2010 like for Royal Enfield (RE) in terms of sales versus demand/waiting period?
2010 was an “agony and ecstasy” kind of year. We completed the transformation of Royal Enfield’s full product line-up to the UCE ( Unit Construction Engine) platform. Success on two fronts – first that our supplier partners as well as our internal manufacturing guys were able to get from 500 to 4500 bikes per month on this engine. Second, that our customers accepted this change, in fact even appreciated it and continued their love affair with this brand. As you probably know, such basic engine changes are very critical for an automotive company. The agony part of 2010 was that we were so involved in getting the engine right that we were not able to increase our volumes significantly past the 52000 mark set in 2009. On top of that, Classic demand skyrocketed after our 2009 November launch with waiting periods mounting up to 8 months.
2010 was an “agony and ecstasy” kind of year. We completed the transformation of Royal Enfield’s full product line-up to the UCE ( Unit Construction Engine) platform. Success on two fronts – first that our supplier partners as well as our internal manufacturing guys were able to get from 500 to 4500 bikes per month on this engine. Second, that our customers accepted this change, in fact even appreciated it and continued their love affair with this brand. As you probably know, such basic engine changes are very critical for an automotive company. The agony part of 2010 was that we were so involved in getting the engine right that we were not able to increase our volumes significantly past the 52000 mark set in 2009. On top of that, Classic demand skyrocketed after our 2009 November launch with waiting periods mounting up to 8 months.
Q: How has 2011 shaped up so far? What are the challenges ahead?
2011 so far is up 40% over last year! With widespread acceptance of the new engine and incremental improvements in capacity both at our suppliers and at our plant we have been able to significantly ramp up volumes right at our 60 year old plant in Tiruvotriyur ( North Chennai). So now we are routinely clocking 6000 motorcycle sales and production every month.
2011 so far is up 40% over last year! With widespread acceptance of the new engine and incremental improvements in capacity both at our suppliers and at our plant we have been able to significantly ramp up volumes right at our 60 year old plant in Tiruvotriyur ( North Chennai). So now we are routinely clocking 6000 motorcycle sales and production every month.
Q: Would you say Royal Enfield is a volume or a niche player?
Royal Enfield is an aspirational motorcycle brand in India, and a “Romantic British” brand in the rest of the world. In my opinion, we occupy a clear niche and mean to make it fantastically easy for people to find us, ride us, and enjoy a life of leisure.
Royal Enfield is an aspirational motorcycle brand in India, and a “Romantic British” brand in the rest of the world. In my opinion, we occupy a clear niche and mean to make it fantastically easy for people to find us, ride us, and enjoy a life of leisure.
Q: What role does export play in your total sales? Do you export the same bikes you sell domestically or is the demand different for each country?
Currently, exports is only about 5% of our total sales. We sell in over 30 countries around the world, in both mature developed markets such as the USA, UK, France and Germany, as well as developing markets such as Argentina, Columbia and Nepal. Of course, there are significant differences between what we sell in India and what we sell elsewhere on account of every country’s strict homologation rules as well as their rider’s tastes.
Currently, exports is only about 5% of our total sales. We sell in over 30 countries around the world, in both mature developed markets such as the USA, UK, France and Germany, as well as developing markets such as Argentina, Columbia and Nepal. Of course, there are significant differences between what we sell in India and what we sell elsewhere on account of every country’s strict homologation rules as well as their rider’s tastes.
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