B Govindarajan, CEO of Royal Enfield, recently declared the company’s ambitious foray into the electric vehicle (EV) industry by creating ‘distinctly different electric motorcycles.’ As reported by PTI, Royal Enfield has already begun investing in product development and fostering a supplier ecosystem around its Chennai-based plant. The auto manufacturer has earmarked a capex of ₹1,000 crore for the present fiscal, with a significant focus on EV manufacturing and product development. Part of this capital expenditure will also facilitate the launch of new products from the company’s existing internal combustion engine portfolio.
“Our EV journey has been steadily progressing. Royal Enfield’s EV expedition is now in full swing. We aim to create distinctly different electric motorcycles, which echo the strong Royal Enfield DNA,” said CEO Govindarajan during an analyst call. A competent team has been commissioned to intensify investment in product development, product strategy, product testing, and the development area.
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Govindarajan stressed the company’s focus on a robust long-term product and technology roadmap in the EV sector and the development of a supplier ecosystem. Extensive prototyping and testing are currently underway, as the company’s commitment to EVs ramps up.
The CEO highlighted the company’s strategic investment in Stark Future, a collaborative venture working towards co-creation and leveraging each other’s strengths. As for network expansion within the domestic market, Govindarajan disclosed that Royal Enfield currently operates around 2,100 retail outlets across India. This number includes a mix of studio stores and dealership outlets.
Royal Enfield, a division of Eicher Motors, confirmed its acquisition of a 10.35% equity stake in Spanish electric motorcycle maker Stark Future for 50 million euros in December 2022. Eicher Motors CEO Siddhartha Lal stated that the board approved a ₹1,000 crore cash outlay for capital expenditure dedicated to the Royal Enfield business in FY23-24.