Royal Enfield will not be manufacturing motorcycles with an engine displacement larger than 750 cc. In an interview to Motorcycle Magazine Mr Siddhartha Lal, MD and CEO of Royal Enfield, has confirmed that the company will not be going below 350 cc mark.
RE is currently retailing 5,000+ units of the 500 cc models. These include the Royal Enfield Bullet 500, Royal Enfield Classic 500, Royal Enfield Thunderbird 500 and Royal Enfield Continental GT 535.
When asked about staying below the 750 cc limit, Mr Lal said:
Yes, we won't go beyond that, and we won't go below 250cc either, though I don't expect to go below our current 350cc capacity – that's the playing field we have set for ourselves for many different reasons. One is because we don't see any genuine volume scale in India or other emerging markets for a motorcycle above 750cc, and our economics only work when we can sell on a large-scale basis.
Mr Lal says that the present crop of motorcycles may not find it comfortable to keep up with typical highway speeds in developed markets where traffic moves at 75 mph. That is where the upcoming twin cylinder Royal Enfield motorcycle may come into its own. The CEO calls this motorcycle 'highway worthy'.
Royal Enfield broke its all-time sales record in April 2017 selling 58,564 units in the domestic market.
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