Royal Enfield is struggling to keep up with their own legacy, registering a downfall in sales when compared to the iconic sales number of 2018. The brand is planning to open 350 studio outlets with a primary focus on the rural market. The 12-20 units per month of sales target, along with just 500 sq.ft of the total area will help new partners with a decent amount of capital join the RE family. The 225 sq.ft of the area will be dedicated to the display space while remaining will go into the service and spares section. The brand currently has 825 dealers in India and 42 international stores.
The number of dealerships is expected to touch the 1100 mark by the end of this year. The
brand has never tried entering the rural market with a dedicated studio outlet plan and unlike other brands, they have a dedicated fan following across the rural areas of the country. The one-sixth size will bring down the operational cost, keeping the initial real estate investment low and still, allow a decent number of product displays. As this decade will soon come to an end, the brand is strengthening itself for the next 10-year term that will be full of surprises.
The brand will first shift from BS4 to BS6 during the next few months and above all, introduce
better versions of their own bikes. They could phase out the 499cc engine in favour of the 648cc motor as the primary sales-driving part will still be the 346cc engine. Breaking the 350cc barrier will bring more taxes to them and thus, future depends upon two engine segments for sure. The Himalayan could shift to the bigger 648cc platform while Bullet, Classic, and Thunderbird names would rule the 350cc segment. The studio outlets may focus on these three motorcycles initially.
