by Swaraj Baggonkar from https://www.moneycontrol.com
Royal Enfield will have the highest number of launches this year: CEO Vinod Dasari
This year, Royal Enfield is ready to introduce more models annually than ever before as the niche bike maker looks to further strengthen its iron grip on the middleweight motorcycle segment
The Eicher Motors-controlled company that specialises in building bikes with engine sizes of 350cc to 650cc, currently, has its order backlog full. This can keep its factories running for the next 2-3 months without any new bookings.
Speaking to analysts, Vinod Dasari, CEO, Royal Enfield, said: “We have a very exciting (product) pipeline. This year will probably see the highest number of new models that is ever seen from Royal Enfield in a year. And that is just the beginning of the pipeline.”
Over the last few months, Royal Enfield launched the Meteor 350 and the new Himalayan, besides offering new colours on the 650 twins – Continental GT and Interceptor. Dasari did not provide details on the models that can be expected from Royal Enfield.
“We will continue to have one new model every quarter. Because there is a delay due to COVID right now, I don’t think we will squeeze everything in but there are some very big models coming in. We are very excited about it. We will have to do all the marketing and market preparedness for that,” Dasari added.
While sales of the 650 twins in India nearly halved to 10,256 units in FY21, largely due to COVID-19 disruption, Royal Enfield believes that there is space for more 650cc products.
“Yes, there is a need to think about every platform. Not just the Twins, but Himalayan, Meteor and Classic. So we should think about every platform on how we can meet other kinds of customer requirements,” Dasari added.
The pandemic disrupted the supply chain network of the automotive industry, leading to shortages and delay of critical parts with parts manufacturers dealing with high absenteeism on the shop floor. Shortage of semiconductors, which started in Q3FY21, is still impacting output.
Royal Enfield production has also taken a hit, dropping to half of its peak output during the first two months of FY22. From 80,000 units a month, Royal Enfield sold an average of 40,000 units a month between April and May. The company, however, has an order backlog of 2-3 months.
“New model launch development takes 3-5 years depending on the complexity of the vehicle. So, the models are ready, I want to be able to have a clear visibility of the supply chain so I can launch it in enough quantity and not be short of supply. So, we may delay the launch by a month or so but I don’t see any massive changes because of that,” Dasari added.
Royal Enfield New Motorcycle Launches Will Be Highest This Year – CEO
by Arun Prakash from https://www.rushlane.com
In Dasari’s own words, “This year will probably see the highest number of new models that are ever seen from Royal Enfield in a year”.
Although Covid-19 has led to disruptions of operations at many levels, Royal Enfield is still confident to launch multiple new models in FY2022
Even if the company does not receive any new bookings, it has enough backlog orders to clear which will keep the assembly line moving for at least the next 2-3 months.
Late last year, the Chennai-based bikemaker announced that henceforth it will be launching as many four models (new and upgraded) every year which meant one new launch every quarter.
Future RE models
Since November last year, Royal Enfield has launched one brand new model in the form of Meteor 350 and updated three others including Himalayan, Interceptor 650 and Continental GT 650. The brand’s next big-ticket launch is expected to be the new-gen Classic 350 which will be based on the J architecture as Meteor. Along with this, the company has planned a couple of 650cc models including a cruiser and a classic roadster.
The manufacturer is also reportedly developing a new scrambler based on the same 650cc parallel-twin chassis. The company recently filed a trademark for the same called ‘Scram’.
Another crucial new model slated to launch in the coming few months is the new roadster which goes by the name ‘Hunter’ and is expected to take on Honda CB350 H’Ness. According to Dasari, all these models are ready to be launched as they have already been in development for 3-5 years.