Business Upside

More
    IEM SECURE

    The Revival of Royal Enfield Motorcycle in India

    A well-known Indian brand, Royal Enfield motorcycles, has broken records in terms of sales in India and internationally. But this wasn’t the case twenty or so years ago since Royal Enfield was on the verge of bankruptcy. With more than a million motorcycles sold globally, the automotive company has recorded its best-ever sales. Additionally, the company’s sales have risen by around 27%.

    If you had purchased a Royal Enfield motorcycle in 2001, you would currently just own an outdated, challenging bike. However, if you had made the identical investment, today it would be worth Rs. 3.53 crore. Despite serving a specific market, Royal Enfield continues to be one of the top motorcycle brands in India.

    A Brief about the Royal Enfield Motorcycle

    Royal Enfield India subsidiaries are presently owned by Eicher Motors Limited has subsidiaries in Chennai, India. The business produces the Royal Enfield Bullet and other single-cylinder motorbikes. The company was founded in 1901 in England with the name ‘Enfield” and in 1955 it came in India with the new name, ‘Royal Enfield‘, Bullet 350 being the first model in India.

    The Indian government ordered 800 Royal Enfield 350cc bikes in 1955 for its police and armed services. Indian army used them in patrolling the nation’s borders.

    Who Owns Royal Enfield?

    Siddhartha Lal is the only person who can be held solely accountable for Royal Enfield, and he is the one who turned the tables on the company. Mr. Lal has been praised for being able to build Royal Enfield, a bike that is sold internationally, because of his passion for the firm. Lal took over as COO of the Eicher group in 2004.

    Royal Enfield Net Worth

    But in 2010, the tech sector in India started to expand. Eicher Motors generates revenues of Rs 8,738 crore and a net profit of Rs 702 crore. Most of these profits, around 80%, are earned by Royal Enfield.

    Royal Enfield motorcycle‘s prices were higher than the low-powered Japanese motorcycle brands in India, but they were less expensive than the well-known international brands. And even after the brand’s sales prospects began to improve, the business decided not to change its prices to maintain the motorcycles competitive in the price-conscious Indian market. In addition to solid pricing power, Royal Enfield’s operating margins improved rapidly, resulting in a rapid rise in company valuation.

    Also Read: Success Formula for Growth of Rapido Bike Services

    Share this post at
    - Advertisement -spot_img
    Josie Patra
    Josie Patra
    Josie Patra is a veteran writer with 21 years of experience. She comes with multiple degrees in literature, computer applications, multimedia design, and management. She delves into a plethora of niches and offers expert guidance on finances, stock market, budgeting, marketing strategies, and such other domains. Josie has also authored books on management, productivity, and digital marketing strategies.

    Latest news

    IHQ Reviews Banner

    Related news