India remains the main marketplace for Royal Enfield and all the up and coming products from the brand would be developed with keeping our market in mind. Now the company is looking to extend its reach even in the rural market with the newest studio outlets. The new outlets are completely aimed at boosting local sales.
Lalit Malik, Chief financial officer of Eicher Motors, has said that the new studio outlets that will be inaugurated mainly in the rural places, will have 275 square feet of workshop area and 225 square feet of retail space. He even stated that the organization will add 80 regular-format stores this year. Presently, in India Royal Enfield has 825 outlets while the global store number stands at 42 only.
Malik stated:
“These (studio outlets) will be one-sixth the size of a typical Royal Enfield showroom in a metro. We don’t expect these small stores to sell more than 12-20 bikes per month. This is our first rural foray in India. Under our big distribution thrust, we aim to touch 1,100 towns via 1,350 stores this year.”
Well, these new studio outlets are hoped to offer an additional thrust to the local sales of the Chennai-based two-wheeler brand. Let you know that the domestic sales have already witnessed a decline since November 2018 because of the return of Jawa motorcycles. The numbers dropped for the sixth successive month in April. And the company has testified 17% negative year-on-year sales performance in last April.
On the other hand, exports have seen quite an improvement. The Royal Enfield Continental GT 650 and Interceptor 650 have been the remarkable reason behind the rise in exports. For example, in April 2019, the exports recorded a 139.87% growth in the year-on-year sales numbers. Lal had specified in the past that the RE 650 Twins can accomplish global sales of up to 1million units each year in the next 5-10 years. In recent times, the Royal Enfield Continental GT and Interceptor INT 650 are available in markets such as USA, UK, Indonesia, Vietnam, Thailand, New Zealand, and Australia. In the meantime, the company is working hard on its BS6 compliant models. We spotted on the test mules of the next-gen motorbikes more than once in the past.
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