Royal Enfield kick-starts Thailand, Indonesia subsidiary talks
Royal Enfield, the manufacturer of classic motorcycles, is working to establish subsidiaries in Thailand and Indonesia on the wave of strong sales and growing brand awareness in Southeast Asia.
The local subsidiaries will be in charge of all business aspects, said Arun Gopal, head of international business for the Indian motorcycle firm. The company is in talks with the investment bureaus of each country.
“We are expanding our team and network in both countries after opening subsidiaries in North and South America,” he said. “Thailand is such a mature market for premium motorcycles, while Indonesia has annual sales that are 20% less than here.”
The company wants to further build Royal Enfield’s reputation and achieve sales on a global scale, said Mr Gopal.
In the past four years, Royal Enfield has steadily expanded its global footprint in major cities.
He said Europe is now the largest market of Royal Enfield, followed by Southeast Asia and Latin America.
Royal Enfield is also studying the feasibility of its first overseas manufacturing plant, with Southeast Asia and Latin America being on the shortlist of locations.
“We are studying the benefits that each country is offering, but a concrete timeline for us has yet to be disclosed, depending on a demand outcome,” said Mr Gopal.
Royal Enfield entered Thailand in late 2015 and appointed General Auto Supply Co as its first Thai distributor.
In 2016 the company sold 1,039 motorcycles here and 1,133 in 2017, according to the Land Transport Department.
From January to June, the department reported that Royal Enfield sold 839 motorcycles, up 42.4% year-on-year.
Mr Gopal said Royal Enfield is pushing sales growth across international markets, including Thailand.
“We have flagship outlets on Thong Lor and Vibhavadi Rangsit roads and Royal Enfield will open a third outlet in Chiang Mai on Thursday to keep building the brand and expand our strong network locally,” he said, adding Royal Enfield has 11 exclusive service centres nationwide.
Founded in 1893, Royal Enfield was the oldest motorcycle brand in Britain but its home production base closed in 1970. In 1990, Royal Enfield collaborated with Eicher Motors and became one of its divisions in 1994.
Royal Enfield defines itself as mid-sized premium motorcycle, with engines sized from 250-750cc.
Royal Enfield motorcycles are produced in three factories in Chennai, India with an annual production capacity of 950,000 motorcycles, supporting every market globally.
The firm produced 820,000 motorcycles in the last fiscal year, ending in March, 95% of which were sold, mainly in India. The product line‐up includes the Bullet, Classic, Thunderbird, Continental GT and Himalayan.