- Royal Enfield stuck in patent infringement issue
- It’s related to regulator rectifier
Royal Enfield might hit a roadblock when it comes to BS6 motorcycles roll-out if it fails to resolve a patent infringement issue with Flash Electronics.
A few weeks ago, Delhi-based Flash Electronics, a leading manufacturer of electrical auto components filed a lawsuit against Royal Enfield in US. Flash Electronics claims that Royal Enfield was sourcing the regulator rectifier from Varroc Group for its motorcycles. The Delhi-based company claims that it has the patent for the regular rectifier in US as well as in Europe. It looks like this component, in the current deal could only be used in Indian market.
Royal Enfield claims that there are other suppliers of this component who could be considered. So the BS-VI motorcycles will be rolled out as planned. However, the company will continue to face such issues till the lawsuit is resolved. According to a report, Royal Enfield has offered Flash all of its international business. But there were no promises made for the domestic business.
We are just few months away from the BS-VI launch timeline. If Royal Enfield doesn’t find a solution to this problem, its next generation bikes are likely to get a bit more expensive than planned due to delays.
Source: livemint
Image Source: Rushlane