Royal Enfield to launch electric motorcycle by 2025: Siddhartha Lal

Sales of premium motorcycles are set to double in the next five years, Siddhartha Lal, the Managing Director of Eicher Motors, told Economic Times, hours away from the launch of the all-new Bullet 350. According to the report, Lal told ET that premium motorcycle sales are surging at twice the rate of entry-level commuter bikes. He is of the view that India is currently poised to become the world’s third-largest economy and the trend in premium motorcycle sales mirrors the aspirations of the middle class.
Lal further emphasised that India already commands a substantial share of the market, constituting half of the global mid-weight motorcycle market (ranging from 250-750 cc). This shift towards premium motorcycles aligns with the increasing affordability of the Indian population, he said. In contrast, the Western markets have reached their peak for high-performance motorcycles due to demographic changes and economic pressures.

Currently, Royal Enfield is dominating the middle-weight motorcycle segment with over 90% market share and finds itself in a ‘sweet’ spot, according to Lal. He identifies this segment as a growth opportunity, with current sales nearing a million units. Lal further anticipates a potential doubling of sales in the next five years in the segment and predicts growth at more than twice the rate of the regular commuter market in the next decade.
Data from the Society of Indian Automobile Manufacturers (SIAM) confirms the surge in demand, with sales of motorcycles in the 250-750 cc range reaching 791,878 units in 2022-23, a substantial 38% increase from the previous year. Out of this, Royal Enfield itself experienced a 41% boost, selling 734,840 units during the same period.

Competitors like Hero MotoCorp, Honda Motorcycle & Scooter India (HMSI), and Bajaj Auto are preparing to introduce nearly a dozen mid-weight motorcycles in the coming months, looking to challenge Royal Enfield’s dominance in this segment. While Lal acknowledges the competition, he underscores Royal Enfield’s customer-centric approach, comprehensive ecosystem and wide range of products as an edge and also underlines the manufacturer’s expansion into untapped markets.
Over the last three years, Royal Enfield’s international business has grown, thanks to the introduction of a Euro V compliant platform. In 2022-23, they exported 100,055 units, marking a 23% increase from the previous year. Royal Enfield leads the middle-weight motorcycle segment in the UK and South Korea and also ranks among the top three brands in Thailand, Austria, France, and Italy, signalling substantial global potential.

The demand for entry-level bikes has remained subdued, primarily due to weak consumer sentiments in rural areas. Conversely, premium motorcycle demand has seen a robust recovery following the easing of Covid-19. Young, aspirational buyers now view two-wheelers not just as a means of daily commute but as an overall motorcycling experience, including rides, community engagement, merchandise, accessories, and connected technologies. Export opportunities further entice manufacturers to enter this segment, industry stakeholders told ET.
Siddhartha Lal also shared Royal Enfield’s electric vehicle plans. While actively developing various electric vehicles, the first product is expected to hit the market only in 2025. “We are working really hard but we are not in a rush. The idea is to come out with a product that will interest people and change the market. The plan is to be in (the segment) by 2025,” Lal told the Financial Daily. Royal Enfield is also open to potential partnerships in the electric vehicle sector in the long run.

Royal Enfield recently invested in Spain-based Stark Future for future electric vehicles. Nevertheless, Lal acknowledges that electrification in the motorcycle industry will take time due to cost, weight, and range challenges. He believes that internal combustion engine motorcycles will exist for a considerable period.