Royal Enfield slashes prices in US as part of a new strategy

Royal Enfield is on an expansion spree and with in a bid to reposition the brand, they have dropped the prices of their motorcycles in the U.S markets. The rise in demand globally and armed with a new state-of-the-art factory, Royal Enfield has started the journey of becoming a global leader in the ever growing mid-sized motorcycle market globally. 

Company CEO and owner Siddhartha Lal kick started the campaign by pricing the MSRP of the new 535cc Continental GT Café racer at only $5,999 (Rs 3.74 lakh), much lower than industry observers expected.

Kevin Mahoney, the CEO of Classic Motorworks (the exclusive US importer of Royal Enfield), stated lowering the MSRP prices on the rest of the product line naturally followed suit from Siddhartha Lal’s vision for the GT and the brand positioning overall. “We have always been a unique high value brand. Our high volumes (over 250,000 units will be sold globally in 2014) and increased efficiency allow us to make this aggressive move. We have lowered the MSRP on some of our products by almost $1,400 (Rs 87,304).

The indicated pricing of the product line-up now begins at  USD 4,999 (Rs 3.11 lakh) and goes up to USD 5,999 (Rs 3.74 lakh) for the new 535cc Continental GT.  The revised pricing will ensure more of Royal Enfield Motorcycles sold in the US markets but will also strengthen their market share. 

Source: Auto Evolution