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Royal Enfield announces entry into Indonesian market

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Royal Enfield, the two-wheeler division of Eicher Motors, today 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 aftermarket capability for Royal Enfield in Jakarta, it added.

Backed by a phenomenal growth of over 50 per cent 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 USD 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.

PTI