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Royal Enfield sets up dealer direct network
BDN last featured Royal Enfield in the October 2022 issue, reporting on the brand’s expanded model range, its increased market share, and the success of its UK research and test centre at Bruntingthorpe. Since then, the UK operation has continued to flourish, so much so that the factory has announced that it will establish a wholly-owned subsidiary distribution and direct network from May this year. The new operation will be headquartered in Camden, north London.
Commenting on the announcement Arun Gopal, Royal Enfield’s head of business markets EMEA, said: “The United Kingdom is a key home market for Royal Enfield, having a long legacy of cooperation with India and a rich history. From the foundation of the brand in 1901, to the first UK import sale of India-produced motorcycles in 1977 and the sales growth in recent years with the assistance of MotoGB, Royal Enfield has seen good sales momentum and acceptance in the UK market. We will continue to make investments in the UK, localising our operations and giving our stakeholders the best possible brand experience.”
Speaking to BDN, Gopal went on to explain, “I think the production team and the manufacturing and supply teams have worked extremely hard over the last few years to maintain supply. We have dual suppliers for each motorcycle part, which means our production is less affected than some other producers. Who would have thought that the Meteor and the rest of the 350 platform would have done so well in the UK? I have been talking to many dealers all over Europe, and some of our distributors produce their own brands, like Mash in France, and I know they’ve been struggling, whereas I know that if I put in an order for a Royal Enfield by the 15th of the month, it will be on the sea by the end of the following month – without fail.
“The decision to go direct is no reflection on MotoGB. We sell direct in quite a few markets, including India, North America,
Brazil and Thailand, so it’s not a new concept for us. We’ve got good market shares, good momentum and product is doing really well for us across the region, so there should be at least one market in the whole of Europe where we are closer to the customer. You have to be there to understand what’s happening – if we go through a distributor, it just takes so much more time to understand if there are any issues happening.
“We’ve achieved 23% market share in the UK mid-sized motorcycle sector, and we’re also doing very well in other European countries, but in order to be quicker reacting to consumers’ requirements, we should be direct in at least one market, and the obvious choice is the UK. We will have a fully-fledged team with a country manager, and we are setting up a marketing and sales division so we can hit the ground running.
“The UK direct operation will be something of a test bed for the rest of Europe. If it works here, then the same formula can be rolled out in other European countries. We also have a global brand team being established in the UK, so together with the Technical Centre, we can react to customer demand for new models, which we can then roll out to other markets.”
Royal Enfield anticipates that the existing dealer network will continue after MotoGB’s contract comes to an end, and in addition, it will be looking to fill any open areas. Gopal summed up the situation: “It’s hard work at the moment, but the future is definitely bright.”
Royal Enfield has two highly rated technical centres, one at Bruntingthorpe and a second in Chennai, India. The company’s three stateof-the-art production facilities are located near Chennai and globally Royal Enfield has three modern assembly facilities in Thailand, Argentina and Colombia. With more than 37% Compound Annual Growth Rate for the last five years and sales in international markets up 108% in 2021-22, Royal Enfield can claim to be the leader in the global midsize motorcycle market. Royal Enfield sales@royalenfield.com www.royalenfield.com
Arun Gopal
