The Hindu Business Line : `Enfield faces no threat from Tata's Rs 1 lakh car'

Royal Enfield Motors (REM), whose motorcycles are priced in the Rs 1 lakh price range, fears no threat from the proposed low cost car from the Tatas since it is not in commuting but in leisure segment, according to Mr Anupam Thareja, Director of REM.

The company, which is planning an investment of about Rs 35 crore-Rs 40 crore during the current fiscal to ramp up capacity, has no plans to go for another plant to meet the increasing demand for its vehicle.

He also said Enfield motorcycle was not a relic of the past that appealed only to the older generation but was a contemporary product that appealed to the youth, in particular to the techies.

Speaking to newspersons in Coimbatore after the inauguration of the company's own brand store here, he said the company was not into commuting segment but was in the leisure market. It was into motor cycling as an experience and not into mere production.

While issues like price and fuel efficiency would weigh more with buyers who were buying two-wheelers for commuting, to the Enfield enthusiasts, it was more an emotional choice, he said.

He said Royal Enfield motorcycles catered to a different market segment. While saying that the entry of low priced car from the Tatas, to be priced around Rs 1 lakh may pose a threat to the high-end bikes of other motorcycle manufacturers, Royal Enfield would remain immune to it because it was catering to the leisure segment and not to the commuting segment.

On the defence

Mr Thareja said it was a myth to say that Royal Enfield bikes get their patronage from defence and police personnel and the `toughies' (tough guys). The uniformed forces account for just 2 per cent of the sale of Enfield bikes and it gets much of its demand from cities such as Mumbai, Pune, Delhi, Bangalore, Chennai where the young techies buy in large number.

Asked whether the small number of Enfield bikes sold - around 30,000-35,000 annually - did not show that it was a relic of the past just like the venerable Amby (Ambassador) with the youth opting for trendier motor cycles, he said the fact that the average age of the buyers of Enfield bikes was 25-28 years proved that the bike was a hit with the youngsters and just like the Harley-Davidson bike in the US, Royal Enfield's products connect with the youth of India.

Welcomes competition

Replying to a question as to whether the likely entry of Harley-Davidson bikes into India would not fire up competition for his company, he said he would rather welcome the entry of the US model into India as it would enhance the demand for motor cycling as an experience and would encourage long rides.

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