Royal Enfield is easily one of the largest brands from India that founded and broke records by selling its motorcycle in India and abroad. But this was not the case 20 years or more back then, as Royal Enfield at the time was on the verge of collapse. The car company has earned its excellent sales with over a million bicycles sold worldwide. The company’s sales also increased to about 27%.

Table of Content :

  • Briefly About Royal Enfield 
  • History of Royal Enfield
  • The Man Behind the Success of Royal Enfield
  • Buying Royal Enfield
  • Renewal of Royal Enfield
  • Sales Increase of Royal Enfield
  • The future of Royal Enfield

1. Briefly About Royal Enfield

Royal Enfield is one of the leading US 1.1 Billion Eicher Motors companies. It is an Indian motorcycle company with factories in Chennai, India. The company manufactures the Royal Enfield Bullet and other single-cylinder motorcycles. The company was founded in 1955 and is one of the oldest motorcycle companies in the world.

It started out as a kind of Enfield Cycle Company, a British manufacturing firm, and then went out to produce 500 cc coins. It is a leading grain manufacturing company worldwide and aims to improve its IT infrastructure using industry-leading solutions.

2. History of Royal Enfield

Enfield Manufacturing Company Ltd was established in England to manufacture bicycles. The company manufactures its products under the Royal Enfield Brand.

Not satisfied with just a limited range of bicycle product lines, Enfield Manufacturing immediately decided to focus on building other types of vehicles. In 1899, it began producing a quadricycle called the Royal Enfield Quadricycle which was powered by a rear engine.

In 1901 Enfield Production introduced its first motorcycle equipped with a 239 cc engine. As part of a global expansion strategy, Enfield began selling motorcycles on the Indian market in 1949.

In 1955, the Indian government placed an order for 800 Enemy 350cc Royal Enfield motorcycles for use by the police and armed forces. Royal Enfield motorcycles were considered the ideal choice for the Indian army to roam the border.

In 1990 Royal Enfield partnered with the Eicher car company in India and merged with it in 1994.

In 2000 the company’s sales dropped by 2000 units a month because it was plagued by problems such as low product quality, outdated design, changing taste and customer preferences, and the entry of Japanese two-wheeler manufacturers into the Indian market.

Despite having a tracking system among its many potential customers they see Royal Enfield Brand as a remnant of the past.

3. The Man Behind the Success of Royal Enfield

The man in charge of the tables to turn to Royal Enfield is none other than Siddhartha Lal is the man in charge of Royal Enfield. Mr. Lal was commended for his ability to make Royal Enfield a world-class bicycle because of his dedication to the company. It was 2004 when Lal took over as COO of the Eicher faction.

The group had a wide range of about 15 businesses including tractors, trucks, motorcycles, elements, shoes, and clothing but none of them were leading the market. Lal decided to split 13 businesses and put all their money and focus behind Royal Enfield and trucks, two businesses where he believed the team had real leadership.

Lal decided to fully support Royal Enfield and the trucking business. Shortly after taking over as CEO, Siddhartha reviewed the strengths and weaknesses of Royal Enfield and began to come up with a strategy to mark the road to revival.

4. Buying Royal Enfield

The product was still popular in India until Japanese motorcycles began to enter the Indian market. It was then that Mr. Lal’s father, who owned a tractor manufacturing company and was familiar with the Royal Enfield parts operation, sneaked in to save the species. Enfield was one of the largest companies in South India, especially in the 60s and 70s.

5. Renewal of Royal Enfield

In order to eliminate the type of product back on the verge of collapse, the team decided to return to the product roots to look for solutions that could help it rise again. It is the only Indian car company to work with the Japanese.

Speaking at the time, Mr. Lal said, “They have negotiated with many countries such as the US, Germany, Italy, Austria, and the UK to build an engine or motorcycle, and they feel that the UK understands better.”

We found that the engineering support we could get in the Midlands was the second largest in the world. In the Midlands, the team created the signature of the Royal Enfield Twin inceptor, which gave the bikes extra power and made them suitable for highway riding. This was a huge investment in the product.

They were inundated with a huge consumer demand that was unheard of. This has allowed the product to re-invent itself and to be a product of a lifestyle that fits perfectly with the vibe of traveling and exiting the world. This has made Royal Enfield very popular with cyclists, making it a popular bike rider.

6. Sales Increase of Royal Enfield

In 2005, the company sold only about 25,000 bicycles a year and needed a production scale and the estimated cost had to be distributed by about 100,000 bicycles. Siddhartha Lal built and upgraded Enfield bicycles by riding hundreds of miles and embarking on a motorcycle riding career. Under Lal, as quality improved, sales also grew.

In 2010, the company was selling 50,000 bicycles, but only on three platforms. It was then that Lal decided to build all the Enfield bikes in one place to grow the economy. Enfield Classic, launched from this one-stop shop, holds the fashion for customers. Sales have increased sixfold in the last decade from 50,000 units in CY10 to 589,293 in CY14.

At this point, the sale was enough to help the company split. But soon, the technology economy in India began to grow in 2010, which brought about a change in productivity. Currently, Eicher Motors earns more than Rs 8,738 crore in revenue and makes a huge profit of Rs 702 crore (FY14). Royal Enfield brings about 80% of this profit.

7. The future of Royal Enfield

Prices at Royal Enfield were higher than those of Japan’s low-cost motorcycles sold in India, but they were cheaper than major international brands. And in order to keep the motorcycles affordable in the price-conscious Indian market, the company did not revise its prices even after product expectations began to improve in terms of sales.

Royal Enfield’s strong product pricing and improved performance limits have quickly boosted the company’s value. In 2014, Royal Enfield recorded sales of 302,592 units.

Annual sales were even higher than Harley Davidson’s international sales for the first time in product history. In 2015, Eicher Motors was one of the most expensive car stocks in India.

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