Can Royal Enfield be successful as an EV maker
What's the story
In recent years, Chennai-based Royal Enfield has become one of the most popular brands in the middleweight motorcycle segment in the global markets. This is primarily due to the introduction of the J-series (350cc) and Twins (650cc) range. However, with electrification becoming the need of the hour, the legendary bikemaker has also been developing an all-electric prototype over the past few months.
Context
Why does this story matter?
With the ever-rising prices of fossil fuels and growing pollution levels, the automotive industry is slowly moving to a greener future with Battery Electric Vehicles (BEVs). The ongoing trend has been pushing iconic automakers such as Royal Enfield and Harley-Davidson to adopt modern technology in their portfolios. While the move to electric mobility may seem simple enough, it could upset the bikemaker's loyal fanbase.
History
Royal Enfield has always been a force to reckon with
Established in 1901 under the name "The Enfield Cycle Company Limited," the firm initially sold motorcycles, bicycles, and stationary engines. In 1955, the brand partnered with Madras Motors in India to form 'Enfield India,' which later became Royal Enfield. Since its acquisition by the Eicher Group in 1994, the bikemaker has become a force to reckon with in the retro-inspired middleweight motorcycle segment.
Information
The iconic 'Thump' is primarily associated with Royal Enfield
Royal Enfield motorcycles are associated with the now-iconic thumping exhaust note, fondly called the 'Thump' by the company's loyal fanbase. However, the sound has become significantly muted in the past few years with the arrival of stricter emission norms across the globe.
Electrification
Green mobility is slowly becoming a global priority
With an overall improvement in charging infrastructure and battery technology over the years, along with the implementation of stricter emissions norms, established as well as new automakers are moving toward electric mobility solutions. Also, with EVs being cheaper to run as compared to their ICE counterparts, both the customers and the companies are able to benefit from the situation.
Future
Royal Enfield will launch its first-ever EV in 2024
As disclosed by B Govindarajan, CEO of Royal Enfield, the company is planning to unveil its first-ever electric motorcycle in 2024. The brand has announced a capex of Rs. 1,000 crore for the current fiscal year with a focus on various aspects, including EV manufacturing and product development. "Our intention is to create uniquely differentiated electric motorcycles with strong Royal Enfield DNA," said Govindarajan.
Opinion
Electrified RE motorcycles will upset the company's loyal fanbase
While Royal Enfield's move toward electrified mobility has been lauded by critics, it seems to have upset the company's loyal fanbase worldwide. Even though it was inevitable, enthusiasts claim that the 'Thump' and the retro design were the soul of the bikes. It will take a lot of effort by the brand to retain the character of the ICE bikes in its EVs.