Royal Enfield has confirmed that they are not planning to develop any motorcycles above 650cc. The company will focus only on motorcycles with engine capacity ranging between 250cc and 650cc.
Royal Enfield says there is enough potential in the mid-size segment for them scale up their sales and profits. They would not like to go for bigger capacity motorcycles as there are already established international players like the Harly Davidson, Triumph and Ducati.
"We have thought about a higher displacement cruiser bike but it's a no for the five year horizon. Globally the mid-size market is under-served and if we can replicate the Indian success story in 5 or 10 other markets, that's good enough for us." said Siddhartha Lal, MD & CEO, Eicher Motors.
Currently Royal Enfield has no direct competition in the Indian market; there are no single cylinder vehicles with similar displacement. The KTM Duke 390 will be the first bike that comes close to the RE range in terms of displacement, but then again it caters to completely different set of buyers.
It makes business sense for RE to stick to their current portfolio., but it will be really interesting to see Royal Enfield experimenting a bit – even if through limited run models, to offer motorcycles in different segment with their classic retro styling and all-metal finish.
