[GTO]

Full Bloomberg Article

The company is now making a high-stakes bet on the U.S. and Europe, where producers such as Harley-Davidson Inc. and Indian Motorcycle have been struggling for more than a decade to expand sales as younger consumers choose other hobbies. Siddhartha Lal, the heir to the automotive conglomerate that controls Enfield, says he can win over Western enthusiasts with stylish bikes that cost far less than those made by rivals—and perhaps attract younger riders to revitalize a customer base now dominated by aging boomers.

Lal is pushing ahead nevertheless, anticipating that the appeal of riding will only have grown for the millions of Western consumers who spent much of the year stuck at home—especially by comparison with dining out, travel, and other popular pastimes that have proved to be vectors for infection. “I could be great in India and Brazil and Thailand and Africa,” he says. “But if I’m not in Europe and America, then I’m not a global brand.”

The Bullet and its cousins max out at about 500 ccs, plenty powerful for India’s jammed urban roads and winding, potholed highways. But Lal is convinced it will take more for Enfield to compete in the West, where riders expect to be able to speed down long thoroughfares. The result is the Continental GT, a throwback bike in the mold of the “cafe racers” popular in the U.K. in the ’60s. It and another new model, the Interceptor, come in at 650 ccs, comparable to midrange offerings from Harley and Indian but selling for far less: about $6,000 in the U.S., where they were introduced in 2018, vs. roughly $15,000 for a basic Harley cruiser.

Both Royal Enfield models have been well received in overseas markets, making best-of lists in the motorcycle press and winning a positive review from none other than Jay Leno, the retired late-night host who now spends much of his time reviewing bikes on YouTube. “You know, I think I like this bike. … [The] engine is very balanced, very smooth,” he said as he rode a Continental around Los Angeles in one video. The two models helped Royal Enfield increase export sales 96% in the 12 months to March, to almost 39,000 bikes.

Loved this bit about the early years

Then, one day not long after Eicher bought the company, a bright-red Enfield appeared in the family garage. Lal describes his adoption of the bike as perhaps the crucial moment in the formation of his identity. Compared with the compact, fiberglass-clad Japanese models popular around town, its engine made a “deep thump” rather than a “tinny purr,” he says. He began riding it to school, becoming known around campus as the guy on the Enfield. Friends asked him to take them for rides, and he soon found a group to go on longer trips with, sometimes even up into the Himalayas.

His love for the bike, however, didn’t inspire Lal to consider a career at Royal Enfield. After graduating from St. Stephen’s he drifted between internships his father had secured—one at the German truckmaker MAN SE, another at Enfield, which even then failed to announce itself as his calling—before going to the U.K. for a degree in automotive engineering.

When Lal returned to India he began working in Eicher’s consumer maps division. He was playing around with the idea of leaving to get an MBA when, in 1999, Vikram told him that Royal Enfield had just had its worst year ever. The board was considering shutting it down. Lal thought that would be a shame. Surprising even himself, he made a suggestion to his father: Why don’t I try running it? The Eicher board said yes—Lal might have been aimless, but he was the boss’s son—with two conditions: In 12 months, Enfield would have to stop asking for cash from Eicher. And in 24, it needed to at least be breaking even. If it couldn’t clear either hurdle, the board would pull the plug.

[CrAzY dRiVeR]

RE needs competent cruisers to establish themselves in the US market - and looks like they are almost there! They have received excellent reviews with the 650 twins - and the cruiser can hopefully bring them volumes.

From the spy shots - Looks like RE is doing a better job trying to climb up the product ladder, than Harley Davidson did top-down. The fact that the new Harley management has lost interest in trying to reach out to new markets and riders - should help as well!

[Jeroen]

A lot to be admired about. As most of you know I know next to nothing when it comes to motor bikes. My only biking experiences are with a 1974 fully restored RE Bullet 350 when we lived in Delhi. Loved that bike and the biker community. Really enjoyed it.

Whether the will succeed in the USA and or Europe is, from my very limited point of view, a really long shot. Very few people know RE at all. Even bikers are hardly aware, or at best think of it as an old classic bike brand. Even though new RE are being sold, it is very rare to come across one. If you do come across a RE here, 9 out of 10 times it is an old restored bike, rather then a brand new one.

My old neighbour who is very experience biker, has got himself a Himalaya. Very happy with it. But he is probably more the exception than the rule. (see https://www.team-bhp.com/forum/diy-d...ml#post4887644)

Bikers, certainly here in the Netherlands, are very finicky when it comes to their steeds. Way more so than car owners. So they expect (and get) very high quality finish of their new bikes, easy and very good service from extensive dealer networks.

One of the first things RE must do, is to (re) think of their go to market model. Of course, having the right line up of models is important. But without a very extensive, well trained, well stocked line up of dealers, I just don’t see it happening. Everybody can capture a small piece of a big market. But making an impact on a large, very well established market with well established international players is quite the thing.

Never the less, I wish them well and I certainly look forward to seeing more RE on the European roads

Jeroen

[dragracer567]

Very interesting.

Ryal Enfield has been among the few Indian brands which have had some success in developed markets + others (Latin America, UAE etc.)

I spotted RE in Europe twice,

Once in Barcelona:



And twice in Brussels (one in a shop, not sure for what) and once on the street but couldn't get a pic



Both these pics are from 2017.

[bongSENse]

Originally Posted by CrAzY dRiVeR

RE needs competent cruisers to establish themselves in the US market - and looks like they are almost there! They have received excellent reviews with the 650 twins - and the cruiser can hopefully bring them volumes.

From the spy shots - Looks like RE is doing a better job trying to climb up the product ladder, than Harley Davidson did top-down.

I have a reasonably close source who currently works at RE. Personal commitments aside, he would NEVER give up any proprietary information about the company's products/strategies/upcoming launches howsoever hard I may try. It is quite a task to get information out of him as he would always talk in equivocal terms whenever I would get too curious (respect him for being professional though)

So, we were chatting up last week and I asked him about the details of the new cruiser that was spotted and then we got talking on the whole Meteor 350 vs Honda H'ness chapter. In short, he mentioned that RE has a lot of products lined up for India and the capacity of motorcycles range from 650cc to all the way up to something of the likes of HD Fatboy. It is just a matter of time (and favorable market conditions) before the company plans on launching these bikes. Now when I came across this thread of RE trying to increase their footprint in the EU and USA, it kind of makes sense about RE developing bigger motorcycles for global markets. I'll not be surprised if I come across some spy-shots of bigger RE bikes sometime soon!

With HD's exit from India, the time is rife for RE to do something worthwhile now. I hope their product strategy is on point and they don't screw things up at such a sweet opportune moment.

[rajushank84]

My gripe is RE still don't have an ergonomically friendly 650 twin. The Interceptor isn't that, Continental even less so, and all cruisers are basically un-ergonomic. All they need to use is the classic Bullet design which - though dated otherwise - has excellent ergos. I will probably skip all the 650s just for this reason, preferring the new Bullet (whatever they decide to call it) just for this reason.

[CrAzY dRiVeR]

Originally Posted by bongSENse

In short, he mentioned that RE has a lot of products lined up for India and the capacity of motorcycles range from 650cc to all the way up to something of the likes of HD Fatboy.

Although Fatboy sounds way too much for RE's positioning and capabilities right now - they did showcase an 838 Concept earlier, which could rival the the likes of HD 883 range.

https://youtu.be/3YBfB3Es7rE