Enfield enjoys almost the entire 250-350 cc motorcycle market in country
Royal Enfield, well known for its bullets, said it is not going to be easy for any new entrant to unseat the company. Bajaj Auto, which entered the 350-500cc motorcycle segment in December, claimed to have overtakenin February in volumes.
“If you look at the 250 cc plus motorcycle market in India, every 19 of 20 products are sold by us…that is a reality. It is not that easy to unseat someone who is doing this,” Siddhartha Lal, managing director and chief executive officer of Eicher (which owns Enfield) told Business Standard. Bajaj’s claim was based on one month’s performance of the Dominar, its new 373cc premium sports motorcycle.
Japanese two-wheeler major Honda is also reported to be working on a motorcycle to cater to this segment. “It is very clear. There will be people entering. There is no doubt about it. Just that it is still a very small segment. If more players enter it may help grow the segment,” said Lal.
Enfield enjoys almost the entire 250-350 cc motorcycle market in the country, estimated at close to 50,000 units a month. This is where it gets the lion’s share of its sales. It controls 80 per cent In the 350-500 cc market (data for the first 11 months of FY17). This is a much smaller segment, with monthly volume of 5,300 units.
Lal added that the company is doing lot of things on and off product. “Our dealerships are unique and don’t cater to mass products. It is not like a factory shop. We are working to improve and enhance the experience. And on the product side lot of things will happen. I am sure there will be good and interesting motorcycles from others. But we don’t want to cater to everything. If somebody comes and creates a new segment, good for them. We want to stick to our core and do what we do well,” said Lal. ()