“There is a huge potential for us to grow in this market (Europe) from our current market share of around 8.5 per cent…it’s very difficult for anyone to say how much it will grow (going ahead) but from here it can go only in one direction that growth year on year, ” he noted.
Govindarajan noted that the company is in the process of creating a market for its products in Europe. “All our products are Euro five now..and now we are into the brand building exercise and working with the community and making the brand to be a full brand here,” he said.
Royal Enfield sells its bikes from around 600 multi-brand retail outlets across Europe and the number is expected to grow further, he noted. The company currently has 20,000 strong riding community in the market which is expected to grow further going ahead, Govindarajan said. He noted that the company is also evaluating having its own distribution network in various European countries as has been already done in the UK.
“In the UK, we have taken the distributorship and we are directly appointing dealers… We are also evaluating other markets in Europe and what sort of the method … thereby we reach the consumers directly,” Govindarajan said.
Citing the example of the Indian market, he noted that the company created the market for middle-weight bikes in the country.
“In India, in 2011-12 the actual market size for the middle weight bikes was only about 50,000 motorcycles per year. Over time it has become almost about 9 lakh motorcycles in which we hold about 90 per cent market share,” Govindarajan said.
On Tuesday, Royal Enfield unveiled its first-ever electric vehicle design concept here at the EICMA Motor Show.
Electric Himalayan Testbed is a new expression of sustainable exploration for the future and an imaginative rendition of what a Royal Enfield electric adventure tourer could look like, the company said.
The company also unveiled the all new Himalayan here at the show.
“At Royal Enfield, our Electric Mobility team is powered by the objective of preserving the quintessential Royal Enfield DNA, and extending that into our creative ideas and designs for electric motorcycles as well. This Electric Himalayan concept motorcycle is an outcome of this pursuit, as purpose and innovation meet distinct Royal Enfield design and character,” Govindarajan said.
The motorcycle is only just a part of a much bigger sustainable ecosystem of exploration and adventure that the company is working on, he added.
The company aims to launch its first EV product in 2025.
Royal Enfield sells models like Meteor 350 cruiser, Interceptor 650 and Continental GT 650 twins, the all-new Himalayan adventure tourer and the Bullet 350 and Classic 350 singles.
A division of Eicher Motors, Royal Enfield operates through more than 2100 stores across all major cities and towns in India and through nearly 850 stores in more than 60 countries around the globe.
With more than 37 per cent CAGR for the last 5 years and sales in international markets up 108 per cent in 2021-22, Royal Enfield is the leader in the global mid-size motorcycle market.