Royal Enfield Stand alone Needs No partnership
Royal Enfield doesn’t need either a partnership for its technology development or motorcycle manufacturing, says Lal, the MD and CEO of the Eicher Motors. When he was asked about the partnership announcement by Bajaj-Triumph recently, he replied, “There is certainly no partnership required. It is not from either technology or manufacturing or distribution. Therefore, if you look at the three aspects of the business — marketing distribution, manufacturing, and technology — we do not need a partner now. It is not a desperate need. I mean, not even desperate, it is not even a real need, let us put it that way,”
Bajaj partnership with the British motorcycle manufacturer, the Triumph will manufacture 250-750 cc motorcycles to take over the market of Royal Enfield motorcycles in the famous Chakan plant.
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Keeping the same strategy, Bajaj launched its Dominar 400 (373 cc) recently and fetches a sale of 1,100 units, while the Royal Enfield’s monthly sales is about 3,200 units per month.
Royal Enfield is the current brand that still dominates the mid-size motorcycle marketplace.
Lal said that Royal Enfield is in the development of technology and improvement stuff that don’t need an alliance. “That is the reason we have been investing so much in our facilities and in our teams in the UK and also in India. Right now, there is no need for Royal Enfield to have a partner let us say for those purposes,” he further said.
The company is setting two technical centres for product development in the UK and India and spends around 800 Crores for the project.
Royal Enfield is a high margin business, which keeps the company to the elite ones in the automobile industry. Lal also added “We continue to do what we do, which is to give extremely well-designed and relevant, in terms of performance. So, these are not over fast bikes, people want a mix of low in torque and good fuel efficiency in India. And of course at the price points at which we can grow the market,”.