- 250cc Royal Enfield plan shelved
- Wants to focus on profit margins
A few months ago, there were rumours about Royal Enfield developing their most affordable motorcycle. This bike would sport a 250cc engine and would help the company get more volumes. But it looks like, this bike could never see the light of the day.
According to a report, the Chennai-based manufacturer has dropped the 250cc plans. It has decided to rather focus more on profit margins and less on getting volumes-based sales. This new 250cc motorcycle was going to help the company get into a more affordable segment, but it looks like it doesn’t want to go with high-volume low-margin products anymore.
The same report states that Royal Enfield is eyeing a whopping 25 per cent EBIDTA on 50,000 unit sales each month. This can be possible only if the company focuses on selling high margin products like the Classic 350.
Source: ET
