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Friday, April 21, 2017

Royal Enfield rides into Brazilian market

BY PTI | UPDATED: APR 21, 2017, 05.30 PM IST

NEW DELHI: Niche bike maker Royal Enfield today announced its entry into Brazil, the fourth largest two-wheeler market in the world. 
The company has entered the Latin American country with three models-- Bullet 500, Classic 500 and the Continental GT cafe racer. 
It has set up its second direct distribution subsidiary outside India in Brazil, with having established the first such entity in the US in 2015. 

The newly-formed subsidiary - Royal Enfield Brazil - at Sao Paulo will sell bikes to dealers, as well as conduct all front-end development and support activities such as marketing and after-sales in the country. A flagship store has also been opened in the city.
The company sees a huge opportunity in Brazil that has a hugely underserved mid-sized motorcycle market with a massive commuter base.

"We are delighted to be formally entering Brazil, and are able to offer our motorcycles to a whole new group of customers, that will enable us to realise our competitive potential in the fourth biggest motorcycle market in  the world," Royal Enfield President Rudratej (Rudy) Singh said in a statement. 


The company sees a huge opportunity in Brazil that has a hugely underserved mid-sized motorcycle market with a massive commuter base, he added. 


"With motorcycle enthusiasts in Brazil waiting to upgrade to simple yet timeless and evocative motorcycles, Royal Enfield with its authentic British pedigree will be able to provide an excellent alternative with an accessible cost of ownership," Singh said. 


In the coming years, Brazil can become one of the company's biggest markets outside of India and help it become a leader in the middle weight motorcycle segment globally, he added. 


Royal Enfield already has strong presence in Colombia, another important two-wheeler market in Latin America. 


With a compounded annual growth rate (CAGR) of more than 50 per cent in the last six years, Royal Enfield has become one of the most profitable automobile brands in the world. 

The company sold more than 6.6 lakh units globally in 2016-17 fiscal. It intends to ramp-up its production capacity to up to 9 lakh motorcycles by 2018-end, to meet its increasingly rising global demands. 


Read more at:
http://economictimes.indiatimes.com/articleshow/58299279.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst


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