Royal Enfield is testing prototypes of electric motorcycles
In order to fulfill the ambition of launching its first electric bike by 2025, Royal Enfield has commenced testing EV prototypes in various parts of the world, including India. The firm has also decided to set up a new vertical for EVs, pump in significant investments, and hire talent for its technology centers in our country and the UK.
Why does this story matter?
Automakers across the globe are jumping on the sustainable mobility bandwagon and Royal Enfield is no exception. Electric two-wheelers have lower running costs in comparison to their ICE-powered counterparts and fuel prices are continually on the rise. All of these make Royal Enfield's entry into the EV segment seem like a good motive. Brands like Hero MotoCorp and Ola Electric will serve as rivals.
'Our goal is to create unique products in EV space'
The Chennai-based brand claims to have made investments in the EV business over the last six to eight months. It was in terms of creating physical infrastructure for vehicular tests and their "associated preparedness." "Royal Enfield is known for offering motorcycling experience, not just products alone. Our objective is to come out with differentiated product offerings in the EV space," said CEO B Govindarajan.
Electrification of high-end bikes will take time
Royal Enfield is unlikely to electrify its premium motorcycle segment soon. The firm is hard at work on finding technologies that will improve the range, durability, performance, and cost-effectiveness of its electric-powered high-end bikes. A better charging network is also a key requirement for customers.
RE will invest Rs. 2,000 crore in the venture
Royal Enfield is yet to finalize its EV investment program. However, the brand and its parent company Eicher Motors, have applied for the Centre's Production Linked Incentive (PLI) scheme under the champion OEM category and will invest Rs. 2,000 crore over a five-year period. The funds might be used for gathering resources for its electric two-wheelers and improving technologies related to them.
