The funding will go towards setting up Royal Enfield’s first electric motorcycle factory.
Eicher Motors, the parent company of Royal Enfield, plans to invest Rs 1,000 crore in its motorcycle business in FY2024. The funding will go towards setting up Royal Enfield’s first electric motorcycle factory, and also expand its existing portfolio of petrol-powered offerings.
B. Govindarajan, Chief Executive of Royal Enfield said, ” We are currently working on blocking capacities with suppliers, working with them to figure out our requirements and developing our product. We will think of what capacity we put up at a later stage.” Our intent is to create very uniquely differentiated electric motorcycles with a strong Royal Enfield DNA. We have started our deep investments, we are committing ourselves in the product development area, in infrastructure, testing and development. We have laid out a strong product and technology roadmap, what products we have to do at what point of time and all with all the supply partners we have started engaging in the development cycle,” Govindarajan added.
Royal Enfield has its sights set on the global mid-weight motorcycle space, with the aim to grab a larger share of this segment of the market. The company’s exports crossed the 1 lakh unit mark in FY2023, as it commenced CKD operations in Brazil. Royal Enfield also exports its bikes to Argentina, Colombia and Thailand.
Royal Enfield has also been gaining market share in India, reaching close to 30% in the previous fiscal. The bikemaker registered a growth of 18% in Q4 of FY2023.