Endorsement in developing market is a trend of business since strategic business concept based on futuristic requirement has been practiced by every business tycoon. India’s most loved and demanded heavyweight cruiser motorcycle company Royal Enfield, owned by Eicher Motors, has planned something really big for forthcoming years.
Eicher Motors Ltd is planning to put loads of money in commercial vehicle and two-wheeler in 2017-2018. The company projects to allot Rs 800 Crore for Royal Enfield, and for the commercial vehicle, the figure may go somewhere between Rs 450 Crore.
Siddhartha Lal, Managing Director & CEO, Eicher Motors, said, “We will be spending about Rs 800 Crore in this fiscal year 2017–2018 to set up manufacturing plant at VallamVadagal near Chennai, market expansion, two technical centers, and product development. Royal Enfield has been known for investing in boosting capabilities and building capacity”.
The 3rd manufacturing facility of Royal Enfield is anticipated to start the production in August 2017. By combining the third plant production numbers, the yearly capacity of Royal Enfield is projected to reach 825,000 motorcycles units in 2017-2018.
Lal specified that the instant trade outlook persisted strong for its motorcycle business and Royal Enfield would endure to raise steadily, profitably and competitively towards leading markets and escalating the growth of mid-sized motorcycle segment globally.
In the current year, the company opened a subsidiary of direct distribution in Brazil. With this, Royal Enfield now has 25 stores around the globe, which also includes the first exclusive store in Sao Paulo.
Eicher motors also have a joint venture with Volvo Group—VECV, which plans to invest Rs 450 Crore in this fiscal year across it business.
Lal said, “The CV business has had a tumultuous year in 2016-17 where various issues like demonetization, rising fuel expenses, and BS-IV switch influenced the demand. Regardless of these difficulties, VECV outpaced the business, overall sections by recording a 12.6% growth rate against the business development of 4% and offering most noteworthy ever 58,604 units for the monetary year”.
“The implementation of the GST regime will also motivate the sales figure of new range series trucks and boost the market share in coming months,” lal added.