Royal Enfield Is Building Some Muscle In The Land Down Under

Things are looking good for Royal Enfield in Australia.

By: Enrico Punsalang

Mar 4, 2021 at 10:45pm ET

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A recent report from Australian motorcycle publication, MCNews.Au, suggests that Royal Enfield could be gaining some traction in the Australian market. The Indian motorcycle manufacturer has been hard at work in revamping its existing model range to suit a wider variety of motorcycle enthusiasts, as well as releasing new models into the market.

During an international launch event, Royal Enfield showed sales data for the Asia Pacific region, which included Australia and New Zealand. Interestingly, sales figures state a massive 88-percent increase in the region from 2016 to 2020—no mean feat in the span of five years. For Australia and New Zealand in particular, Royal Enfield saw an impressive 57-percent growth in the same period. This impressive growth likewise translates to a 4.2-percent market share in Australia as of the end of 2020.

Royal Enfield occupies the mid-sized motorcycle segment with all of their bikes sporting displacements within the 300cc to 700cc range. Classified as a sub-segment in the Aussie motorcycle industry, Royal Enfield holds an impressive 13.1-percent share in the market. Furthermore, reports state that the company has been posting 46-percent year-on-year sales growth in the region.

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As a result, it would appear that Royal Enfield is fast gaining steam towards bigger, more mainstream manufacturers. In fact, Royal Enfield's sales have surpassed that of premium brands such as Ducati and Triumph. With this, it's only a matter of time until the classic bike maker overtakes the likes of KTM and Suzuki. Royal Enfield's steady growth in the region has been evidenced by an impressive 65-percent increase in their number of stores. Just three years ago, Royal Enfield had 26 dealerships across Australia and New Zealand. This year that number is up to 43—with 32 outlets in Australia, and 11 in New Zealand.

Furthermore, Royal Enfield is reportedly evaluating the feasibility of setting up CKD facilities in the region to account for increasing demand. This will allow the company to streamline production in the region, and could ultimately result in even more affordable prices for the company's already competitively priced products.