Royal Enfield to boost Thai presence with big investment, new models
Royal Enfield's iconic mid-size motorcycle models has announced plans for significant investment in Thailand, expressing confidence in sales growth that will outpace the market this year, said its head of Business and Asia Pacific Anuj Dua at a media group interview on Wednesday.
Despite ongoing economic turbulence, he expressed unwavering confidence in the Thai market.
He projected the Thai mid-size motorcycle market (250-750 cc) to remain stable at approximately 25,000-27,000 units this year. This forecast comes amidst ongoing economic and political uncertainty in the country.
"This year presents a challenging landscape for the motorcycle market due to various economic factors, including household debt and reduced consumer purchasing power," Dua noted.
In terms of Thailand's recent political turmoil, he believes the country will recover smoothly as usual, returning to stability with the new government in place to drive economic growth.
Despite these challenges, Royal Enfield expects to grow by 10-20% during the fiscal year 2024/2025, which ends in March 2025. Last year, approximately 4,000 Royal Enfield motorcycles were sold.
Meanwhile, the company attributes its positive outlook to its expansion strategy, which aims to increase its presence throughout Thailand. Royal Enfield currently operates 36 dealerships in 24 provinces, and plans to add 14 more outlets by March 2025.
Dua emphasised the critical role of local dealers nationwide in not only increasing access to aftersales services but also building the rider community and fostering loyalty.
"Royal Enfield does not sell motorcycles; we believe in selling motorcycling. As a result, our dealers in each area must plan a monthly trip for the biker. We will continue to focus on creating differentiation through product," he said, promising more exciting rides at community events within the next six to eight months.
Whilst the mid-size motorcycle market in the Asia-Pacific region is generally on an upward trend, Thailand and Vietnam continue to grapple with economic slowdowns. In response, Royal Enfield is working closely with its dealers to navigate the market downturn, anticipating a gradual recovery.
To bolster sales and meet targets, the company intends to launch one new model later this year, with at least three more slated for release next year.
Royal Enfield's commitment to the Thai market is further evidenced by its plans for increased global investment in the country. Thailand currently hosts one of the company's six global subsidiary offices and serves as an assembly point for seven models, which are distributed domestically in partnership with local businesses.
Dua then highlighted the company's commitment to sustainability.
He discussed sustainability in relation to the company's efforts to implement sustainable practices and environmental initiatives in Thailand. He mentioned bringing sustainable practices from India to Thailand, the value of energy efficiency, community support, and the use of solar energy.
"Our operations are sustainable. We will develop these practices in the new market," he explained.
Regarding electric vehicles, he stated that Royal Enfield is focused on developing a well-planned EV product rather than launching one to compete with others.
He reiterated that the company's goal is to create aspirational and high-quality EV motorcycles that meet the needs of its customers, emphasising the importance of extensive testing and development before introducing an EV to the market.
Furthermore, he stated that they are not in a hurry to launch an EV and prefer to take their time to ensure that it meets their standards.
As Royal Enfield continues to strengthen its foothold in Thailand, motorcycle enthusiasts and industry watchers alike will be keen to see how the company's ambitious plans unfold in the face of ongoing economic challenges.
