Royal enfield enters indonesia to take on mid-size motorcycle segment
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The company announced its future plans for Indonesia, the third largest two-wheeler market in the world, as a part of its growth strategy and focused international thrust of leading and
expanding the global mid-sized motorcycle segment (250-750cc), Royal Enfield said in a statement. Royal Enfield, the two-wheeler division of Eicher Motors, on Monday announced its entry into
the Indonesian market, with plans to commence retail operations in the Southeast Asian country in the coming months. The company announced its future plans for Indonesia, the third largest
two-wheeler market in the world, as a part of its growth strategy and focused international thrust of leading and expanding the global mid-sized motorcycle segment (250-750cc), Royal Enfield
said in a statement. "Indonesia is a strategic market for Royal Enfield. With its large commuter base, this market has enormous potential to upgrade to the next level of motorcycles,
should there be optimal product choice," Royal Enfield, Head of International Business Arun Gopal said. Royal Enfield is well poised to fill this gap and catalyse the shift to mid-sized
motorcycles in Indonesia, he added. "We will build our presence from Jakarta and depending on the response, expand our footprint to the other key cities in Indonesia," Gopal said.
As per its entry plans, the company will commence retail operations in the coming months from its exclusive dealership in Jakarta that is being set up in partnership with PT Distributor
Motor Indonesia, who have signed-up as a dealer for the region, the company said. In addition to the store, they will also build service and after market capability for Royal Enfield in
Jakarta, it added. Backed by a phenomenal growth of over 50% year-on-year in the last five years, the company's ambition is to lead and grow the middle weight segment, which is under
served globally with respect to evocative products, Gopal said. "We believe this growth will largely come from markets like India such as Latin America and South East Asia, given their
size and comparable commuting trends. Towards this, we entered Colombia last year with a very encouraging response to our products," he added. In 2014, Royal Enfield sold more than
3,00,000 motorcycles globally. Parent company, Eicher Motors, recorded its highest ever total revenue of %1.4 billion with large contributions from the Royal Enfield business unit. In the
current year, the company aims to produce 4,50,000 motorcycles to support its global growth strategy.