Two different Indian outlets are reporting that Royal Enfield is planning/considering bringing a new 250cc to the Indian market.

Similar reports on a 250cc bike

Both Money Control and The Economic Times said that Royal Enfield is looking at the new machine to foster sales growth.  Rumors say that the new bike will make its first public appearance sometime in 2020.  However, both say that Royal Enfield has not confirmed their reports.

Royal Enfield has said that a slowing economy has affected its sales and that brand fatigue is not an issue.  But The Economic Times thinks that the slump is also due to a number of factors.  The cited factors include an increase in pricing of about 8 – 10% over the last two years because of more stringent emission requirements, a spike in insurance costs, and the introduction of mandatory anti-lock braking systems.

Royal Enfield has had a sterling sales history in the last 5 years, but recently sales have fallen into a double-digit decline.  It’s Royal Enfield’s new CEO Vinod Dasari’s job to stop the bleeding.

Responding to sales

Rumors say that his chosen path is to set up an additional 350 sales outlets in less populous locations, consider bringing a new 250cc model to market and also ensure that a “no-frills” Royal Enfield bike is available to prospective buyers.

Such a bike will permit Royal Enfield to cater to both the value and premium segments simultaneously.  If a prospective buyer does not want all the bells and whistles, they can buy a new-frills bike.  For customers that want to customize the bike, there will be a large selection of Royal Enfield accessories.  Such accessories are often high-profit items.

Future plans

When asked about future plans, an unnamed company spokesman said:

“We will continue to focus our efforts on bringing classic, evocative and fun-to-ride motorcycles for our customers. We have persistently worked on keeping our motorcycles accessible, from the perspective of availability, ride experience, as well as ownership experience.

On the role of customisation, we have a range of genuine motorcycle accessories that allow buyers to customise and personalise their motorcycles. We believe it is a core aspect of self-expression for our riders. We will continue to work towards making this experience more seamless for the customer.”

We’ll bring you more as more info becomes available.

Royal Enfield Bullet 350 image for reference only. Photo credit: Gaadiwaadi.com

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