Royal Enfield, the iconic motorcycle brand, has confirmed its foray into the electric motorcycle segment, with its first offering set to hit the market in the financial year 2026. The company’s Managing Director, Siddhartha Lal, recently shared this timeline during the Q1 FY2024 earnings call.
Focused Development and Partnerships
Royal Enfield has been diligently working on the development of its electric motorcycle, with a dedicated team of around 100 professionals focused on the EV space. The company has also collaborated with Spanish electric motorcycle maker Stark Future to expedite its electric vehicle (EV) plans. The brand aims to bring a disruptive and innovative electric motorcycle to the market, necessitating time and rigorous testing to ensure a fantastic product.
Investment and Manufacturing
To bolster its EV business, Royal Enfield has allocated a capex of ₹1,000 crore for EV manufacturing and product development. The company has set up a new vertical internally, hiring a specialized team to execute the project. An installed capacity of about 1.5 lakh units for the upcoming electric motorcycle has been established, and the plant is designed to be modular, allowing for future expansion.
Competition and Market Strategy
Entering the electric motorcycle space, Royal Enfield is expected to be a game-changer, particularly as the segment is currently dominated by start-ups. Competitors such as Ultraviolette Automotive, Oben Electric, and Tork Motors are active in the market, but Royal Enfield may target the premium end of the segment, staying true to its brand ethos.
Upcoming Launches and Financial Performance
Amidst its electric motorcycle venture, Royal Enfield has exciting launches lined up for this quarter. The next-generation Bullet 350 is expected to debut soon, followed by the long-awaited Himalayan 450 by year-end. Additionally, the company has several motorcycles in the pipeline, ranging from 350, 450 to 650 cc, set to be unveiled in the next two years.
In terms of financial performance, Royal Enfield’s parent company, Eicher Motors, registered its highest-ever quarterly revenue, EBITDA, and Profit After Tax (PAT) in Q1 FY2024. The company reported a total revenue from operations of ₹3,986 crore, reflecting an increase of 17.3% compared to the same quarter in FY2023. EBITDA stood at ₹1,021 crore, growing by 22.8% over the previous year, and the Profit After Tax reached ₹918 crore, indicating a significant growth of 50.4%.
With its electric motorcycle project and a strong financial outlook, Royal Enfield is poised to make a significant impact on the two-wheeler industry as it continues to innovate and expand its product portfolio.
