Royal Enfield setting up 10 more shops to earn sales
Indian mid-sized motorcycle manufacturer Royal Enfield plans to generate sales by adding 10 stores in Thailand next year despite the sluggish market caused by the pandemic impact.
Siddhartha Lal, managing director of Eicher Motors, which oversees the Royal Enfield brand, said the company aims to become No.1 in the global mid-sized motorcycle segment, emphasising daily riding and leisure purposes.
"In Thailand Royal Enfield began with one store for three years. The company now has 26 stores and plans to expand to 36 by March 2021," he said.
The spread of the coronavirus affected the Thai motorcycle market, which decreased by 22% between April and July.
The market has started to pick up since June, said Royal Enfield chief executive Vinod K Dasari.
He said international markets have been performing very well and Royal Enfield's global strategy has been successful.
The company has more than 600 stores across 60 countries including 77 exclusive stores in nodal cities across the world.
In Asia-Pacific, where 103 stores have opened, Royal Enfield is focused on retail expansion. The store network grew by 50% in priority markets across the region.
In 2019, the company announced Thailand would be its second production facility after the local market responded well to mid-sized motorcycles.
Royal Enfield plans to open an assembly factory for bikes in Chachoengsao during April to June 2021.
The manufacturer signed a contract with a local vehicle assembler, United Auto, to operate the factory at Gateway City Industrial Estate in the province. The initial assembly capacity is 1,200 units a year, based on Royal Enfield's sales in Thailand of roughly 100 motorcycles a month.
Vimal Sumbly, head of business in Asia-Pacific for Royal Enfield, said sales increased from 889 in the first year to 3,146 motorcycles in the fourth year.
The company sold 3,146 motorcycles last year, increasing from 1,487 sold in 2018. From the 2018-19 fiscal year to 2019-20, the company's retail grew by 112%.
Royal Enfield's market share stands at 5.5% in the mid-sized motorcycle segment (250-750cc) in Thailand.
"We also had 321 bookings during the 41st Bangkok International Motor Show," he said.
Bookings increased despite the impact of the outbreak. Last year, the company received 314 bookings at the event.