Royal Enfield, a prominent motorcycle manufacturer and a subsidiary of Eicher Motors, is making significant strides in the development of unique electric motorcycles. CEO B Govindarajan has confirmed that the company has already begun investing in product development and establishing a supplier ecosystem at its plant in Chennai, India.
With a focus on EV manufacturing and product development, Royal Enfield has allocated a capital expenditure (capex) of Rs 1,000 crore for the current fiscal year. This investment will not only support the development of electric motorcycles but also facilitate the introduction of new products from the company’s existing internal combustion engine portfolio.
During an analyst call, Govindarajan expressed his optimism about Royal Enfield’s EV journey, stating that it is now in “top gear.” The company’s objective is to create electric motorcycles that are distinct and embody the strong Royal Enfield DNA. To achieve this, Royal Enfield has assembled a capable team and is making substantial investments in product development, strategy, and testing.
Govindarajan highlighted the company’s robust long-term product and technology roadmap for electric vehicles. Currently, Royal Enfield is focused on developing a supplier ecosystem to support its EV ambitions. Extensive prototyping and testing activities are underway as the company is fully committed to realizing its vision for electric motorcycles.
Royal Enfield has also made a strategic investment in Stark Future, a Spanish electric motorcycle maker. This collaboration allows both companies to learn from each other and capitalize on their respective strengths. The investment in Stark Future, amounting to 10.35% equity stake for 50 million euros, further reinforces Royal Enfield’s commitment to the EV segment.
In addition to its EV initiatives, Royal Enfield will allocate a portion of the capex towards expanding its network in the domestic market. Currently, the company operates around 2,100 retail outlets in India, consisting of a mix of studio stores and dealership outlets. The focus is on a measured expansion approach that ensures the profitability of each outlet and dealer.
Overall, Royal Enfield’s investments and efforts in electric motorcycles demonstrate its commitment to embracing the evolving landscape of the automotive industry. With a strong emphasis on product development, supplier ecosystem creation, and strategic collaborations, Royal Enfield aims to establish itself as a key player in the electric two-wheeler segment while continuing to cater to its loyal customer base with its internal combustion engine portfolio.