The Eicher Motors-controlled company that specialises in building bikes with engine sizes of 350cc to 650cc, currently, has its order backlog full. This can keep its factories running for the next 2-3 months without any new bookings.
Speaking to analysts, Vinod Dasari, CEO, Royal Enfield, said: “We have a very exciting (product) pipeline. This year will probably see the highest number of new models that is ever seen from Royal Enfield in a year. And that is just the beginning of the pipeline.”
Over the last few months, Royal Enfield launched the Meteor 350 and the new Himalayan, besides offering new colours on the 650 twins – Continental GT and Interceptor. Dasari did not provide details on the models that can be expected from Royal Enfield.
“We will continue to have one new model every quarter. Because there is a delay due to COVID right now, I don't think we will squeeze everything in but there are some very big models coming in. We are very excited about it. We will have to do all the marketing and market preparedness for that,” Dasari added.
While sales of the 650 twins in India nearly halved to 10,256 units in FY21, largely due to COVID-19 disruption, Royal Enfield believes that there is space for more 650cc products.
“Yes, there is a need to think about every platform. Not just the Twins, but Himalayan, Meteor and Classic. So we should think about every platform on how we can meet other kinds of customer requirements,” Dasari added.
The pandemic disrupted the supply chain network of the automotive industry, leading to shortages and delay of critical parts with parts manufacturers dealing with high absenteeism on the shop floor. Shortage of semiconductors, which started in Q3FY21, is still impacting output.
Royal Enfield production has also taken a hit, dropping to half of its peak output during the first two months of FY22. From 80,000 units a month, Royal Enfield sold an average of 40,000 units a month between April and May. The company, however, has an order backlog of 2-3 months.
“New model launch development takes 3-5 years depending on the complexity of the vehicle. So, the models are ready, I want to be able to have a clear visibility of the supply chain so I can launch it in enough quantity and not be short of supply. So, we may delay the launch by a month or so but I don't see any massive changes because of that,” Dasari added.