Royal Enfield maker has hired a commercial team to gauge market requirements for the first electric motorcycle
Eicher Motors, the maker of the Royal Enfield motorcycles, is looking to introduce its first electric bike in India in the next two years. Managing director Siddhartha Lal told ET that the company will install a production capacity of 150,000 units for its rollout. The production facility will be commissioned gradually in a modular fashion, said Lal, who is also the CEO.
The Gurgaon-headquartered company, which dominates the premium motorcycle segment in India with a market share of about 90%, said it has recruited a commercial team to assess market requirements for its first electric motorcycle.
“We are currently testing the prototype and will bring in a disruptive product. We have put together a team to look into the commercial side of this business,” said Lal. “Our product is two years out.”
Lal said the market for mid-weight motorcycles in India is growing at a brisk pace. The company sold 225,368 Royal Enfield motorcycles last quarter, an increase of 21% from a year ago.
The CEO said competition has increased in the segment, but it will also help expand the category.
India’s leading two-wheeler makers Hero MotoCorp, Honda Motorcycle & Scooter India (HMSI) and Bajaj Auto are driving in nearly a dozen mid-weight motorcycles over the next few months to challenge the dominance of Royal Enfield which has long ruled the Indian roads with the ‘Classic’ and ‘Bullet’ models. Last month, Bajaj-Triumph launched two 400cc models in India–Speed 400 and Scrambler 400. Shortly, Hero MotoCorp is expected to start deliveries of the first motorcycle it has developed in collaboration with Harley Davidson—the X440.
Eicher Motors, meanwhile, continues its strong run. The company beat Street estimates to report its highest-ever first-quarter net profit at Rs 918 crore. Total revenue from operations for the June quarter stood at Rs 3,986 crore, up 17.3% from a year ago. EBITDA (earnings before interest, tax, depreciation and amortisation) stood at Rs 1,021 crore, up 22.8%.
“Q1 has been significant for Eicher Motors Limited as both Royal Enfield and VECV have registered their best-ever first-quarter performance, and have recorded tremendous growth,” Lal said. VE Commercial Vehicles Ltd., the joint venture between Volvo Group and Eicher Mothers, sold 19,571 commercial vehicles in the quarter compared with 17,469 in the same period a year ago.
Keyword: Royal Enfield gearing up to launch its first electric bike in 2 years