Royal Enfield will spend Rs. 550-600 crore on balancing its capacity, products and variants this financial year
Royal Enfield and VECV (Volvo Eicher Commercial Vehicles) will be investing around Rs. 1,000 crore to Rs. 1,100 crore in the current financial year. Royal Enfield alone will pump in Rs. 550-600 crore while the remaining sum of money will be invested by VECV. The Chennai-based manufacturer will spend the money on balancing its capacity, products and variants.
The brand commenced its CKD (Completely Knocked Down) operations in Thailand and Colombia last fiscal and it resulted in a massive YoY sales increase of 108 per cent in the global markets. It holds on to 7 per cent market share in the middleweight space in Europe, 5 per cent in the American continent and 7 per cent in the Asia Pacific region according to Siddhartha Lal, Managing Director, Eicher Motors.
The retro motorcycle maker is aiming big on overseas markets and is currently working on zero-emission vehicles. He noted that the engineering work is on for EVs but the product cycle will be “super long”. The electric motorcycles from Royal Enfield are still years away and Royal Enfield has been testing a number of new ICE models pertaining to domestic and international markets.
Late last year, Royal Enfield unveiled the SG650 concept and the 120th year anniversary edition of the 650 Twins. The company has been testing a scrambler based on the J-series engine platform and it could go by the name Hunter 350. It is expected to go on sale in the second half of this calendar year and it could take on the likes of Honda CB350 RS and Yezdi Scrambler.
RE is also developing a liquid-cooled 450 cc Himalayan and a trio of 650 cc motorcycles – a cruiser that could be dubbed the Super Meteor 650, a classic themed 650 and a bobber that could act as a production version of the SG650 concept.
In the final quarter of this financial year, Eicher Motors posted its highest revenue of Rs. 3,193 crore and the profit stood at Rs. 610 crore. In the last FY, Eicher Motors registered its highest ever total revenue of Rs. 10,298 crore as well. The brand announced a final dividend of Rs. 21 per share in the 2021-22 financial year with a payout sum of Rs. 574 crore.