USA TODAY International Edition
Royal Enfield revs its way into US motorcycle market
Executive says company has ‘momentum going’
MILWAUKEE – It’s the “other” motorcycle company in Milwaukee that didn’t just celebrate its 115th anniversary but is older than Harley-Davidson Inc. Royal Enfield, based in India but with its North American headquarters in Milwaukee, now has nearly 90 dealerships in the U.S. and Canada – up from zero when the company landed here three years ago. Former Harley executive Rod Copes led the effort to establish Royal Enfield in North America, starting with bikes that captured the essence of oldschool motorcycling – a throbbing engine, simple electronics and a low price – and this year adding models that are a little bigger, more powerful and have anti-lock brakes. Royal Enfield produced its first motorcycles in Britain in 1901, two years before William S. Harley and Arthur Davidson built their first bikes for the public in Milwaukee. But while the Royal Enfield company is popular in India, one of the world’s largest markets for two-wheel vehicles, it has barely had a presence in the U.S., where Harley dominates heavyweight motorcycle sales. Copes, now president of Royal Enfield North America, established a dealership in Milwaukee in 2015 and has since brought the brand to dealerships in 34 states and Puerto Rico. “We spent about the first three years setting up the business, getting the systems, processes in place. Now we are running the business, which is a lot more fun,” Copes said. “We’ve got the momentum going.” This year, Royal Enfield expects to manufacture about 950,000 motorcycles, more than three times what Harley will ship to its dealerships around the world. But about 95 percent of Royal Enfield’s sales are in India – a big difference between it and Harley. That’s why the company hired Copes to get the North American business started, practically from scratch. “The beauty of it is we have the oldest motorcycle company in the world, and we are kind of resurrecting that brand,” he said. Copes says he doesn’t see the company being a competitive threat to Harley-Davidson. That’s because Royal Enfield has focused on midsize motorcycles rather than big touring bikes and cruisers like Harley makes. The power and speed of a Royal Enfield doesn’t match a high-performance Honda, Kawasaki or a Harley Softail. Instead, the bikes are better suited for city streets, two-lane highways and dirt roads, where it’s more about enjoying the ride than breaking the speed limit.
Industry stuck in low gear: Royal Enfield has made its sales debut in the U.S. as the motorcycle industry has been stuck in low gear. U.S. sales, including all manufacturers, peaked in 2007 at 1.1 million bikes, according to the Motorcycle Industry Council, and have since fallen to 538,000 in 2017. Harley-Davidson, the world’s largest maker of heavyweight bikes, has seen its U.S. sales growth stumble for a variety of reasons, including fewer young people getting into riding. “I would say, right now, we are romancing growth, courting growth. We aren’t growing, so this is dating,” Harley CEO Matt Levatich said at a recent event sponsored by business group Scale Up Milwaukee. Harley and Royal Enfield have focused on product development and attracting new riders to overcome the motorcycle market malaise. Harley says it’s partnering with an Asian manufacturer, not yet named, to build smaller bikes that will be sold in India. Some have speculated that Royal Enfield would be a suitable partner for the world’s largest manufacturer of heavyweight motorcycles.
Executive came from Harley: Levatich and Copes rose through the executive ranks at Harley-Davidson at about the same time. Levatich joined the company in 1994, through its leadership development program, and Copes started in 1993. Levatich held numerous roles including president of MV Agusta, an Italian motorcycle company that Harley owned for less than two years. He was Harley’s president and chief operating officer for six years before being named president and CEO in May 2015. Copes was at Harley for nearly 20 years, in various roles including director of investor relations, vice president of the Pilgrim Road operations and senior vice president of global sales and customer service. He ran Harley’s Asia-Pacific division and helped establish the company’s presence in India, where he became familiar with Royal Enfield. Copes left Harley in 2012. Now he has only about 20 people working for him, running Royal Enfield’s North American operations, but he gets considerable support from the parent company in India. Royal Enfield is still a novelty for most folks here. Pull into a gas station on one of the bikes and heads turn, followed by lots of questions. That, Copes said, isn’t all bad. “We have a very small marketing budget,” he said. “Our best advertising is more of our motorcycles on the road.”