Royal Enfield opens subsidiary in Brazil

Royal Enfield on Friday inaugurated its first direct distribution subsidiary in the Brazilian capital of Sao Paulo apart from opening its first stand-alone flagship store there.

Brazil is the fourth biggest two-wheeler market in the world and this subsidiary there makes the second one for the Eicher Motors-owned twowheeler maker outside the country.

Royal Enfield opened its first direct distribution subsidiary outside the country in the US in 2015 as Royal Enfield North America.

The newly-formed subsidiary, Royal Enfield Brazil, will be selling to dealers, as well as conduct all front-end activities such as marketing and after-sales in the Latin American country. It's also present in neighbouring Colombia.

Royal Enfield president Rudratej Singh said the move will help it realise the competitive potential in the fourth biggest motorcycle market in the world. We see a huge opportunity in Brazil that has a hugely underserved mid-sized motorcycle market with a massive commuter base, he added.

Royal Enfield has entered Brazil with a line-up of three of its widely popular models featuring single-cylinder engines under 535-cc category such as the iconic standard street model -- Bullet 500, the retro street model Classic 500, and the Continental GT (535cc) cafe racer, Singh said.

With a CAGR of over 50 per cent in the past six years, Royal Enfield has grown phenomenally, becoming one of the most profitable automobile brands in the world and the world's fastest growing twowheeler brand.