Royal Enfield Becomes Wholly-Owned Subsidiary in North America

Royal Enfield has 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-sized motorcycle segment (250-750cc), with North America representing a priority market for the company.


[dropcap]R[/dropcap]oyal 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 MSRP. Royal Enfield has been exporting motorcycles to North America for 15 years through an independent distributor.

royal-enfields-continental-gtLed 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, Wis.

“Royal Enfield has been growing at over 50 percent 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 Rudratej Singh, president, Royal Enfield.

Royal Enfield President Singh added:

“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.”

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, Wis. will be led by Rod Copes, president of 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.

Rod explained that while the company continues to strengthen its presence in the market, its previous distributors, Classic Motor Works (CMW), located in Fairbault, MN will be transitioning out of distributing Royal Enfield motorcycles by the end of 2015.

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.


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