First Ever Direct Sales Subsidiary of Royal Enfield in US

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Royal Enfield set up its direct sales subsidiary outside India, in the US, in order to cater to the North American market.

Eicher Motors, the two-wheeler division is also planning to open fully-branded retail stores that will sell the company’s entire range of motorcycles and gear in the US.

In North America, the subsidiary will directly sell the bikes to customers and dealers as well as directly conduct all the activities such as marketing of the product, service, after sales and so on for the brand Royal Enfield.

According to Rudratej Singh, the Royal Enfield President, North America is the lucrative international market for the brand Royal Enfield, owing to its rich history of riding enthusiasts. He says that the company is likely to serve the potential customers by localizing its operations in North America.

The strategic announcement by the company is in tandem with its international thrust of expanding the global medium-sized motorcycle segment for 250cc-750cc, with US (North America) portraying a priority market for it.

The current product line of Royal Enfield in North America includes Continental GT 535 cc cafe racer, Classic 500cc and the Bullet 500 cc. they are priced between US $4,995 to US $5,995.

Rod Copes, Royal Enfield President in North America says that within the upcoming 18 months, the company would launch several retail stores for the brand across the US in key metropolitan areas.

The company is also focusing on maximizing the sales and brand awareness by establishing a strong independent dealer network.

Classic Motor Works, the company’s current distributors would transition out distributing the Royal Enfield motorcycles by 2015 end.

For 15 years, the bike maker based in Chennai has been exporting the bikes to North America. It said that the manufacturing activities would continue in Chennai and global headquarters will be the same as in Gurgaon.

More than 3 lakh bikes of Royal Enfield were sold globally in 2014. In 2015, Royal Enfield aims to produce almost 4,50,000 motorcycles, in order to support its global growth strategy.

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