You would have seen many luxury car advertisem*nts where the there is a great emphasis on the glance of the person on the street and the focus on the desire to own it. That turning around of heads to see the marvel running on the road is a key to their appeal.
With Royal Enfield bikes, there is no need for that ad. In fact they don’t advertise much. The loud thump and the beauty of the bike makes heads turn on every nook and corner in India. It was the case 50 years ago, and more so now.
They still call it the Bullet, and not bike or motorcycle (now they have a range of bikes: Bullet, Classic, Thunderbird, Continental GT, Himalayan). I wonder if it’s the legacy of its origin in England, where the first Royal Enfield was built in 1901. The branding said it all “Royal Enfield: Made like a Gun”. Royal Enfield Bullet is said to have the longest production run of any motorcycle ever made, continuously in production since 1948. The brand is old, really old of the old.
But why does it rule the roads in India now in the new millennium?
The bike has been visible (and audible: the unique engine thump) in India right through generations. Whether it is the Bollywood movie in the 60’s showing the army officer riding it to the cantonment or in the 70’s movies hero (generally a rebel/ revolutionary) singing a song to his dear or having an adventurous ride on his bullet. The love for the bullet has been visible right till recent time with many movies to justify a central theme or rebellion, pride, authority and respect. They even had a movie called “Bullet Raja (King)” where the name referred to the gun happy hero as well as his ride, a Bullet.
The pride of the Bullet was visible to the country in the Republic Day celebrations in January 2018, when the women bikers of the Border Security Force (BSF) made history by showcasing stunts riding the Bullet. Interestingly, the Bullet has also had a large female following in recent years with many owning one and forming special women only Bullet clubs.
The Bullet still resonates with the Indian youth, and over the years the ownership has moved to younger riders (25-30 age group) as they no longer wait as the earlier young did, and they can now afford it ( earlier one needed to work for a while to save enough to buy one). Affordability and lowering of ownership age has led to a sharp increase in Bullet ownership in India. More so in relatively wealthier states, and as India marches ahead on growth, other states are moving up the wealth ladder, thus increasing demand for larger bikes, and the only motorcycle with the aura and history is the Bullet.
How old is this old bike?
The Enfield Cycle Company made motorcycles, bicycles, lawnmowers and stationary engines under the name Royal Enfield out of its works based at Redditch, Worcestershire, England. Use of the brand name Royal Enfield was licensed by the Crown in 1890.
They were being sold in India since 1949. In 1955, Enfield Cycle Company partnered with Madras Motors in India in forming Enfield of India, based in Chennai, and started assembling the 350cc Royal Enfield Bullet motorcycle in Madras. The first machines were assembled from components imported from England. Starting in 1957, Enfield of India acquired the machines necessary to build components in India, and by 1962 all components were made in India.
In 1955, The Indian government chose it as the most suitable motorcycle for its police and army, ordering 800 bikes. And from there the love for the Bullet got entrenched in the hearts of Indian youth. If you see the Bollywood movies of the 70’s and 80’s (the angry young / revolutionary/ rebellious hero), the Bullet is prominently seen as an object of fascination, with the hero riding it, the proud army officer taking it to the border post or the police officer rummaging through rough terrain while chasing criminals. That kind of branding is what is desired by the high performance luxury cars of today.
They had the following and the brand image, but somewhat limited to the professions mentioned, as it was linked to them directly, the affordability factor was indirectly linked to those professionals (it wasn’t cheap, selling at 2-3x of normal scooters or bikes) and no new improvement were made. It had its moment of dread when it started facing competition from Japanese bikes (100 cc vs Royal Enfield’s 350/500 cc) and almost went into bankruptcy, when in 1990 Eicher Motors ( Commercial Vehicle Manufacturer) took a stake in the company, eventually taking a controlling majority stake in 1993.
The King of the Roads
The story of Royal Enfield is almost like the movies it which it featured. The new owners streamlined manufacturing, reduced costs and decided to target the regular bike market, not just the army and police force. They introduced an original and one improved version of the bike. This led to the acceptance of the Royal Enfield bikes as a prestige bike and later with refinements such as electric start and smoother handling put it in the mainstream as a premium commuter bike (Classic, Thunderbird).
They focus on a specific segment of the Indian market with a 95% market share in the mid-sized 250cc-750cc motorcycle segment. Most commuter bikes in India are in the 100 cc segment. Their market share among bikes 150 cc and above is about 24% (FY 17) and given its cult following and refined models, one can expect its markets share to grow in the non 100 cc bike segment and Indian youth keeps upgrading to an aspirational bikes. This segment of > 150 cc bikes is grew at 21% in FY 2017, while the lower cc segment saw a decline of 1%.
It is the only motorcycle in India with having the connotation of leisure riding for young adventurers. It has a cult like following, with owners forming Bullet Clubs and organising events and rides focused on Royal Enfield bikes.
Its success is evident in the fact that in FY 2017 they sold 666,492 bikes (already at 593,449 in 9 months of FY 18) and an EBIDTA Margin of 31%. In January 2018, it sold 77,878 bikes (a 31% increase over Jan 2017). Out of this International sales were 1,673 bikes. The Domestic market remains strong, and the company now seeks to explore the international markets and is revving up a strong brand recall in commonwealth markets and creating brand acceptance in major motorcycle markets. It exports to 42 countries like the USA, Japan, UAE, Korea, Bahrain, UK, France, Germany, Argentina etc. They distribute in Australia too. You can see them on the roads, having that familiar thump.
This is the story of Royal Enfield. It is a part of the Eicher Motors group. Steadily growing in India and now exploring international markets. A great company with a reputed and classic brand.
