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Old 4th August 2015, 15:30   #16
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Default Re: Royal Enfield: Their tremendous growth...and the challenges ahead

Kuddo's to Royal Enfield, few companies can equal this succes story.

I would hardly call myself a biker, having owned my very first bike ever only for 2.5 years. A 40 year old restored Royal Enfield Bullet, bought in Karol Bagh. But I have done more than 10.000 km in those years and most of them in company of many other bikers.

A few observations of mine around this RE phenomena. I'm a member of various bike clubs here in Delhi. A few are RE specific, but some such as the DBBR are not. On such 'bring any bike event', be it a DBBR (Delhi Bikers Breakfast Ride) or the (DGR) Distinguished Gentleman ride, or even the bikers group we started in my company, about 90% are still RE.

For most riders their RE is a hobby thing, not a necessity, although there are also the harcore types that will drive their bike to work as well. So RE seems to cater and or appeal to a mostly male, young and upcoming type of audience, with sufficient disposable income to afford a RE as a hobby.

At 56 I'm more often than not, the oldest RE rider in the group. Most are late twenties/early thirties.

Some time ago RE also introduced these Flagship stores to boost their brand and sales. We have two in Delhi. Very smart stores and I have already bought just about every T-shirt with a RE logo on it.

On RE making a lot of money on parts, I would think they still have some way to go. The other day my bullet started to stall when idling. As I had done about 1000km on very, very dusty roads I decided to check the air filter first. Went to Karol Bagh and got myself a brand new air filter for the sum of INR 40.

I have seen many of my biker friends taking delivery of new RE's. And everytime they show off their new bike I will congratulate them, but when I look at these new bikes up close, inwardly I cringe. The quality is appalling. I dont know whether some of it is factory of dealer related, but truth is I have yet to see any new RE being delivered without any flaws. There is always something missing, or something not working, or paint chipped of, or already rust is showing.

For this sort of money it is simply not good enough. But at the same time nobody seems to mind too much. I can draw a parallel with Alfisti's, people who buy Alfa Romeo's. Same thing, fiercely loyal and dedicated to the brand, but Alfa's to date, come with quality problems. Even today, although a lot better than 10 years ago, but still. I also own one Alfa Romeo and lots of T-shirts with Alfa logo's. In Europe, Alfa spares for a 40 year old vehicle, by and large seem much more difficult to get and certainly much more expensive, then the RE filter.

To put the RE prices a bit into an international context. An average RE in India will cost around INR150.000, roughly Euro 2.100. A new RE in Europe will sell upwards of Euro 6.500,--, so three times as expensive

Maybe I should start a thread "The ridiculous price hike of RE in Europe"??

But seriously, Euro 2.000 gets you a top of the range bicycle. Euro 6000 will also buy you a very nice mid range saloon car 5-7 years old.

Anyway, I'm really enjoying my 40 year old Bullet and the many biker friends I have made over the last few years.

Jeroen

Last edited by Jeroen : 4th August 2015 at 15:32.
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Old 4th August 2015, 19:08   #17
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Default Re: Royal Enfield: Their tremendous growth...and the challenges ahead

I'm really happy to see Enfield doing well. I was an Enfield rider till a few months ago. I just got fed up of having the bike spend more time at the mechanic than on the road. Well if you have the time and patience it's a great bike to own. Unfortunately I didn't have either so ended up selling it. I bout the bike second hand for 15K, spent another 45k on doing it up used it for 5 years or so (must have spent around 20K on maintenance during this time) and finally sold it for 95K.
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Old 4th August 2015, 20:58   #18
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Default Re: Royal Enfield: Their tremendous growth...and the challenges ahead

Quote:
Originally Posted by Jeroen View Post

A few observations of mine around this RE phenomena.
At 56 I'm more often than not, the oldest RE rider in the group. Most are late twenties/early thirties.


I have seen many of my biker friends taking delivery of new RE's. And everytime they show off their new bike I will congratulate them, but when I look at these new bikes up close, inwardly I cringe. The quality is appalling. I dont know whether some of it is factory of dealer related, but truth is I have yet to see any new RE being delivered without any flaws. There is always something missing, or something not working, or paint chipped of, or already rust is showing.

For this sort of money it is simply not good enough.
I second this. I own an Electra 5S with the CI engine and probably it was from the last few batches of CI (late 2009). It still runs pretty well without any niggling issues, except for the clutch cable thing. As compared to this, the UCE engined bulls that have been bought by some people I know, keep visiting the service centre for some reason or the other.

Looking at their experience, I feel I did the right thing to get hold of the CI bullet, instead of waiting for the UCE.

Quote:
Originally Posted by Jeroen View Post

To put the RE prices a bit into an international context. An average RE in India will cost around INR150.000, roughly Euro 2.100. A new RE in Europe will sell upwards of Euro 6.500,--, so three times as expensive

Maybe I should start a thread "The ridiculous price hike of RE in Europe"??

But seriously, Euro 2.000 gets you a top of the range bicycle. Euro 6000 will also buy you a very nice mid range saloon car 5-7 years old.

Jeroen
The RE that you get in Europe is way way better in almost all aspects than the one's currently on sale in India. From what I heard, even the chassis of the export version is different than the one sold in India.
For RE to sell the same spec bullets in India as the export version, they will have to raise the prices by at least 50%.
Add the duties and the VAT and there is not much difference left.

Why the pre 1980 Bullets command a very high price in the market is because of this reason. The quality of pre 80's was top notch, and the virus of cost cutting hadn't yet bit the RE's.
Compare those to the new one's and you will instantly notice that the amount of metals used are bare minimum. The heavy crank of the old RE's is no where to be found.

Last edited by vinit.merchant : 4th August 2015 at 20:59.
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Old 4th August 2015, 21:25   #19
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Quote:
Originally Posted by vinit.merchant View Post
The RE that you get in Europe is way way better in almost all aspects than the one's currently on sale in India. From what I heard, even the chassis of the export version is different than the one sold in India.
For RE to sell the same spec bullets in India as the export version, they will have to raise the prices by at least 50%.
Add the duties and the VAT and there is not much difference left.

.

Im not sure. I checked with a German RE dealer, a Dutch RE dealer and a RE factory representative who came along on a weekend ride organized by Manzil motors. I got the same answer. Everything is the same with the exception of the various emission control, including a cath. Convertor. I have looked at new RE in Germany during the Techno Classica I visited and other then this, I could not see any differences.

But this was also a few years ago, maybe things have changed.

However, the sort of quality issues RE have, is nothing to do with specification. Its just sloppiness, carelessness. Which dealer that takes pride in his work, would deliver a bike with rust on it? Or paint chipped, or a brake switch not working. That is just attitude, nothing to do with cost.

Jeroen
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Old 4th August 2015, 23:54   #20
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Default Re: Royal Enfield: Their tremendous growth...and the challenges ahead

Eicher is an amazing story in how Brand and Marketing can take a product places. They have products which are their bread and butter and pearls and some are White elephants. They now need to ensure the product quality improves and also they retain customers.

RE motorcycles should not be a brand which is unable to make their customers a return buyers. Also a lot of new buyers tend to stay away from RE due to stories of horrid maintenance and also pricing. I am not getting into the mileage game as thats not a RE forte.

The following is what needs to be done:
Concentrate on the engine and performance. No WW2 era nonsense. People want fine products with a retro feel.
Every customer is not a mechanic or not best friends with one. Get your machine to a honda state of Fill it and forget. It will run when you put your leg on the bike.
Get the QC to be top notch. Hire some Ex toyota jap folks to check the line for any errors, defects or potential defects in your motorcycle.
Branding: Most important part. Get the spare parts and customization to be a major part of your revenue stream. This is a great way to retain customers and get new ones.
Products: Follow the triump mantra and have bikes in multiple categories. Example being Beginners, retro biggies, retro small, highway mile munchers, cruisers, world travellers, sport(maybe), cafe and city slicker.
Export potential: This is one area where i believe RE is doing a pretty bad job. You need to sell atleast 5k vehicles a month abroad!

This is one indian product which you can be proud of amongst the biking circuit. People know of it and want to ride it.

I believe the share value has taken into account the future value of this company but with the markets you never know.

Good luck and good day.

Maddy
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Old 13th May 2016, 14:39   #21
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Default Re: Royal Enfield: Their tremendous growth...and the challenges ahead

Eicher Motors falls 5%, promoters sell 4.2% worth Rs 2100 cr.

Shares of Eicher Motors tanked 5 percent intraday on Friday after promoters have sold stake in the company. Promoter group has sold 4.2 percent stake in the company for Rs 2100 crore. The company says that the sale has been done to provide liquidity to the promoters, and the proceeds will be utilised for personal uses, such as portfolio and other investments, and for charitable purposes.

Meanwhile, consistent rise in Royal Enfield sales and a recovery in commercial vehicles segment boosted strong operational performance of Eicher Motors in January-March quarter.

A 60 percent jump in Royal Enfield sales in the January-March quarter saw its margins hit a record high of of 29.8 percent in the period. Eicher Motorsí net profit rose by a whopping 71.3 percent at Rs 334.5 crore in January-March from Rs 195.3 crore in corresponding quarter last fiscal.

Stock is currently trading at 19k levels

Article: http://www.moneycontrol.com/news/buz...r_6648341.html
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Old 3rd February 2017, 00:00   #22
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Default Re: Royal Enfield: Their tremendous growth...and the challenges ahead

What a rockstar! Full Economic Times Article:

Quote:
Gurgaon-based Eicher Motors (EML) on Wednesday reported a 61.7% increase in net profit at Rs 399 crore for the third quarter ended December 2016. The company had posted net profit of Rs 247 crore in the corresponding period of the last financial year.

Siddhartha Lal, Managing Director & CEO Eicher Motors said, ďEicher Motors has continued its strong run and reported its quarter results posting the highest ever quarterly income from operations at Rs 2,071 crore for Q3 2016-17, a growth of 42.7% over the corresponding period last year. In this quarter, EML also recorded its highest ever and best-in-class EBITDA at 31.4%.Ē

Total income from operations (inclusive of excise duty) went up by 42.7% to Rs 2071 crore in the quarter under review. While sales of Royal Enfield motorcycles grew by 38.3% to 173838 units last quarter, those of VE Commercial Vehicles dropped by around 7% to 11784 units.
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Old 3rd February 2017, 02:58   #23
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Very impressive performance. Will be interesting to see how they take the company and their products forward. In all honesty, i don't know much about motorbikes other than what I picked up during my four years in India riding my bullet. It's difficult to imagine RE could compete big time with the established bike companies outside of India. They will really have to sharpen up their products, or remain a niche player. Mind you, there is nothing wrong being a niche player and you could still be making good money.

No matter what, I do hope that they will be able to retain that special Royal Enfield feeling that many owners share. These are bikes you buy with your heart, not much rationale to it.

Jeroen
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Old 3rd February 2017, 12:27   #24
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Default Re: Royal Enfield: Their tremendous growth...and the challenges ahead

Quote:
Originally Posted by GTO View Post
What a rockstar! Full Economic Times Article:
Just to clarify as an existing Royal Enfield motorcycle owner for the past 3+ years, I can personally vouch that their strategy is purely oriented towards profit, leaving the customer to struggle with horrible after sales service experience and shoddy parts quality.

Just for information - I own a Thunderbird 500. Its a fantastic motorcycle to ride, but a pain down there and seriously expensive to maintain, especially for aficionados like me who like to maintain their motorcycle in top notch condition at all times. Even if you pay top dollar for those overpriced spare parts, the quality of those parts itself, the quality of the work done and its execution style leaves a lot to be desired. Even the newly launched Himalayan hasn't fared well, predominantly due to pathetic quality.

So, even if they manage to pull a magic rabbit out of their hat, unless they get their act together on the service and after sales front, I'm sorry to say, their new products will fail miserably and only the Classic / Bullet range of motorcycles will continue to sell due to their nostalgic appearance and styling. The monthly motorcycle model wise sales charts are a testimony to my statement above.

It is also the only reason why they aren't disturbing the styling of the vehicle and end up launching a zillion variants and colour combinations year on year with no major technological improvements in ride / handling / power.

Quote:
Originally Posted by Jeroen View Post
Very impressive performance. Will be interesting to see how they take the company and their products forward. In all honesty, i don't know much about motorbikes other than what I picked up during my four years in India riding my bullet. It's difficult to imagine RE could compete big time with the established bike companies outside of India. They will really have to sharpen up their products, or remain a niche player. Mind you, there is nothing wrong being a niche player and you could still be making good money.

No matter what, I do hope that they will be able to retain that special Royal Enfield feeling that many owners share. These are bikes you buy with your heart, not much rationale to it.

Jeroen
I'm not sure how the export models sold abroad fare in terms of long term reliability and maintenance costs, but here in India, it sucks big time and that is one of the prime reasons why most of their new products (Continental GT, Himalayan) etc have tanked badly.
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Old 3rd February 2017, 12:40   #25
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Default Re: Royal Enfield: Their tremendous growth...and the challenges ahead

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I'm not sure how the export models sold abroad fare in terms of long term reliability and maintenance costs, but here in India, it sucks big time and that is one of the prime reasons why most of their new products (Continental GT, Himalayan) etc have tanked badly.
Again, I donít know much about bikes, having only owned and ridden one RE Bullet in India for four years. However, I do get the impression that in Europe RE is a niche player. It has very limited presence on the road. It is very rare to see one. I actually bumped into one the other day, not to far from where we live in the Netherland. It was a vintage one and probably the very first time I noticed a Royal Enfield here in the Netherlands.Saw one at Dover Ferry terminal about half a year ago amidst a group of about two dozen other bikes.

Same for other European countries. Few dealers and few bikes on the road. Mind you, that does mean it is pretty exclusive!

I do know that the European models are somewhat different from the ones sold in India, mainly due to emission regulation. But I donít think the basic product quality is any different. And I was never impressed with that. I have lots of Indian friends who have bought brand new RE over the years and everybody has their own horror story about the bike. Still, they love it to bits.

I compare it with petrolhead love for Alfa Romeo. A very unreliable, poorly made car, it drove well, but then again, it doesnít drive very often. Alfa still has, and always did have,a very loyal following group of owners and enthusiasts. Breaking down, rust, reliability issues, non availability of parts is something that owners put up with. itís called Ďcharmí.

As I said, you buy these bikes with your heart and nothing else. Bring a big wallet and a lot of patience.

Jeroen
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Old 12th December 2017, 20:40   #26
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Default Royal Enfield, the way forward

RE, the first word that comes to mind for many people when the word 'bike' is mentioned. I have been fascinated by Enfields for long, however, niggling issues and breakdowns along with the seat massaging function means that I haven't recommended it to my old man yet.

When I ask people as to why they go for an Enfield, the simple answer I get is that it has a legacy behind it and not to forget "the thump". But, lets be honest, how many customers can you attract based solely on this?

How many people would turn to RE solely for their legacy apart from a few other factors such as looks and comfort?

India, unlike before now has plenty of companies ready to build legacies of their own such as Bajaj and TVS. People realise that Enfields are overpriced, but still buy them, and I think this will continue to happen.

Additionally, the 1.5-2.0 Lakhs price bracket seems to be a really competitive one and enfield has failed to tap into its potential. The niggling issues with the Classic 500 and the archaic 350cc mills have made sure that other bikes make more sense both on paper and off it.


My question, what should RE do now? The Interceptor isn't going to be below 4 lakhs OTR. Here are a few suggestions:

- Plonk the LS410 into the Thunderbird if the platform is compatible

OR
- Derive a fuel injected sibling of the 350cc one used on the current bike

- A Himalayan 500cc atleast would do wonders for that bike is a capable product

- Also look at a Thunderbird 750cc in the future

Royal Enfield: Their tremendous growth...and the challenges ahead-61h26niazl._sl1000_.jpg


More suggestions and point of views awaited...

Last edited by vishy76 : 12th December 2017 at 20:42.
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Old 13th December 2017, 07:28   #27
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Default Re: Royal Enfield, the way forward

In my view RE already has the right set of niche products. Right now there is not much competition. So they are doing well.

The next phase in my opinion for RE is to make the machine more reliable. Just focus the next 2 years on making it as reliable as the Japanese bikes. Then they are set for the next growth trajectory!!!
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Old 13th December 2017, 07:52   #28
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What happens when the push for Electric Vehicles becomes really serious? The Govt. has already indicated a 2030 time frame.

What happens to the THUMP then?
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Old 13th December 2017, 08:53   #29
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Default Re: Royal Enfield, the way forward

A similar thread lying dormant ;
http://www.team-bhp.com/forum/motorb...ges-ahead.html (Royal Enfield: Their tremendous growth...and the challenges ahead)
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Old 15th December 2017, 15:18   #30
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Default Re: Royal Enfield: Their tremendous growth...and the challenges ahead

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What happens when the push for Electric Vehicles becomes really serious? The Govt. has already indicated a 2030 time frame.

What happens to the THUMP then?
The ''THUMP" will be transformed into a "HUM".

RE, for sure will plonk in an electric motor and keep the legend alive. Can't wait to see their catalog saying "Royal Enfield with it's legendary HUM"
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