WI: Royal Enfield Announces 1st Wholly Owned Subsidiary in North America
20 Aug, 2015
Royal Enfield, the fastest-growing motorcycle company in the world, announced its first wholly owned subsidiary outside India, in North America. This strategic announcement is in line with Royal Enfield's international focus on leading and expanding the global mid-size motorcycle segment (250-750cc), with North America representing a priority market for the company.
Royal Enfield is the oldest motorcycle company in continuous production, with roots dating back to 1901 in Redditch, England. A division of publicly traded Eicher Motors Limited (EICHERMOT.NS), its current product line-up in North America includes the iconic Bullet 500cc, Classic 500cc and the Continental GT 535cc cafe racer ranging from $4,995 to $5,995. Royal Enfield has been exporting motorcycles to North America for 15 years through an independent distributor.
Led by an executive team and senior leadership with deep motorcycle category experience, newly-formed Royal Enfield North America will immediately take over operations, marketing, communications, sales, warranty, service, dealership development and finance for the company across the U.S. and Canada. North American Headquarters, along with a new flagship company-owned dealership, will be located in Milwaukee, WI.
"Royal Enfield has been growing at over 50% year-on-year for the last five years. With a proven business model, today we are one of the largest mid-size motorcycle manufacturers in the world. With our increased efficiencies and scale of manufacturing we are strategically positioned to make effective business inroads within international markets, including the United States," said Mr. Rudratej Singh, president, Royal Enfield.
"Motorcycles and the riding culture is robust in North America and it is certainly a growth market for us. A wholly owned subsidiary company in the region allows us to be closer to our customers and significantly enhance their product and ownership experience, with a wider footprint and robust after-sales service network. We are confident that with our current and future product line we will re-invigorate the mid-sized motorcycle segment in the US with motorcycles that are holistic in their approach and are great fun to ride, both in the cities and on back country roads," he added.
Mr. Siddhartha Lal, CEO, Royal Enfield said, "Our motorcycles are inspired by the classic bikes throughout motorcycling history, in form and in simplicity; and they capture the feeling of freedom, fun and responsiveness that riders were trying to achieve then, and brings it into the modern context. Royal Enfields are possibly the most engaging mid-size motorcycles out there. We use traditional craftsmanship and modern technology as a means to achieve the perfect balance between the rider, the machine and the terrain."
The company's regional office in Milwaukee, Wisconsin and the leadership team will be led by Rod Copes, President, Royal Enfield North America, responsible for managing its operation in the market including marketing, communications, sales, warranty, service, dealership development and finance. All manufacturing will continue to remain in Chennai, Tamil Nadu, India where Royal Enfield has been manufacturing since 1955. Global headquarters will continue to reside in Gurgaon, Haryana, India.
"In a post performance era where American riders are looking for machines that are easy to own and maintain, Royal Enfield offers evocative and unintimidating modern classic motorcycles, with timeless appeal. Royal Enfield's first fully branded retail store in the United States will soon be launched in Milwaukee that will retail its entire product line-up of motorcycles and gear. Over the next 18 months we plan to launch several such stores in key metropolitan areas across the US. We are also focusing on building a strong independent dealer network that will maximize our brand awareness and sales," said Rod Copes, President Royal Enfield North America.
"While Royal Enfield continues to strengthen its presence in the market, our previous distributors, Classic Motor Works (CMW), located in Fairbault, MN will be transitioning out of distributing Royal Enfield motorcycles by the end of 2015," added Rod.
In 2014, Royal Enfield sold more than 300,000 motorcycles globally. Parent company, Eicher Motors Ltd., recorded its highest ever total revenue of $1.4 billion USD, with large contributions from the Royal Enfield business unit.
About Royal Enfield
The oldest motorcycle company in continuous production, Royal Enfield made its first motorcycle in 1901. A division of Eicher Motors Limited, Royal Enfield has created the mid-size motorcycle segment in India with its unique and distinctive modern classic motorcycles. With its manufacturing base in Chennai, India, Royal Enfield is able to grow its production rapidly against a surge in demand for its motorcycles. With 50% growth every year for the last 5 years, Royal Enfield is fast becoming a very important player in the global mid-sized motorcycle market and is working towards re-inventing this space with motorcycles that are evocative and engaging and great fun to ride.
Royal Enfield's global product lineup includes the Bullet and Classic with 500cc displacements; and the recently introduced Continental GT 535cc cafe racer. Royal Enfield operates through 16 company-operated stores and more than 400 dealers in all major cities and towns in India, and exports to over 50 countries across the world including the USA, Japan, UK, several European and Latin American countries, as well as the Middle East and South Asia.
Royal Enfield also organizes and supports many motorcycling events and rides on a global scale.