Royal Enfield Mulling a 250cc Motorcycle [Speculation]

Royal Enfield 250cc motorcycle will lower the entry point into the company’s fold. It could be cheaper than all their current motorcycles…

Even during the infamous demonetisation period, Royal Enfield was the manufacturer which was better off than others. They have enjoyed one of the highest profit margins among all Indian manufacturers. However, going for the brand has become tougher in the last few months.

Apart from brand fatigue, this is attributed to the various government rulings which have significantly increased the prices of all the motorcycles. It includes transition from BSIII to BSIV, mandatory ABS as well as the five year insurance rule. The upcoming deadline from BSIV to BSVI is further set to increase the entry point into Royal Enfield’s fold.

Just a referendum of the loss – Royal Enfield, a maker quite accustomed to double digit growth, remained flat in last financial year sales. Fast forward to this fiscal and considering the first four months of de-growth, Royal Enfield may end up this financial year in red – first time in almost a decade! As a result, they have kept the production target of 9.5 lakh units unchanged from last year – a number which they may not be able to achieve this year!

Royal Enfield 250cc Motorcycle
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Royal Enfield 250cc Motorcycle

Understanding the issue at hand, they have roped in Vinod Dasari, an automotive veteran, as the company’s CEO. And according to Economic Times, Mr Dasari has drawn a plan to revive sales. The biggest news for everyone is that they are mulling a 250cc motorcycle, which if goes to production, is expected to sit under their current 350 cc range. Which means that it could be the cheapest motorcycle on offer from the brand and will lower the entry point into the fold.

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Royal Enfield has continued to make motorcycles of over 300cc in the last many years but they have always said that they want to be the most recognised brand in the mid-capacity segment in the world. And they have described ‘mid-segment’ as motorcycles between 250 to 750 cc segment. The other retro-classic motorcycle maker Harley Davidson has also announced their smallest motorcycle (a 338cc) yet recently!