This is a name that needs no introduction. Harley-Davidson Inc. was founded in 1903 and is headquartered in Milwaukee, Wisconsin in USA. It is one of the world’s largest motorcycle manufacturers and a brand with a loyal following. The iconic brand is famous for the chopper motorcycle style with manufacturing factories spread over York-Pennsylvania, Milwaukee-Wisconsin, Manaus-Brazil, Bawal-India, and Pluak Daeng-Thailand. Not only does the company market its products globally, but it also licenses and markets merchandise like apparel, home décor, ornaments, accessories, toys, scale models of its motorcycles, and video games based on its motorcycle line under the Harley-Davidson brand.
The first motor-bicycle was built by 20-year-old William S. Harley along with his friend Arthur Davidson by using the northside Milwaukee machine shop which was located at the home of their friend Henry Melk. The finished bike in 1903 did not have the power to climb hills without pedal assistance and the makers wrote off their first attempt as a learning curve.
Their second attempt was successful with a bike that featured a bigger engine and loop-frame design as it marked their path to future designs of motorcycles. This prototype of the new loop-frame Harley-Davidson was functional by September 8, 1904. It, then, competed in a Milwaukee motorcycle race and was placed fourth.
By January 1905, Harley-Davidson placed small advertisements in the Automobile and Cycle Trade Journal. These advertisements offered bare engines for do-it-yourself projects. The business did well and by April of the same year, the company was producing a limited stock of completed motorcycles.
Within a year, by 1906, Harley and the Davidson brothers built their first single-storey, wooden structure factory on Chestnut Street and produced 50 motorcycles. Chestnut Street was later renamed Juneau Avenue, which also serves as the current location for the Harley-Davidson Corporate Headquarters.
History of Harley Davidson Motorcycle
By 1907, the company expanded its factory and increased its annual motorcycle production to 150 motorcycles. It was also the year that the company was officially incorporated. The company began selling its bikes to police departments as well.
Over the next few years, Harley-Davidson continued making improvements to the engine and the bike design and by the year 1914, Harley-Davidson was pulling ahead of Indian-dominated motorcycle racing and also increased their bike production numbers to 16,284 machines.
World War I proved to be a major sales push for the company as the military demanded motorcycles as the US entered WWI in 1917. It purchased more than 20,000 motorcycles from the company. To recruit more domestic customers for its motorcycles, the company launched a line of bicycles in the same year but discontinued it in 1923 due to disappointing sales. However, by the year 1920, Harley-Davidson had grown to be the largest motorcycle manufacturer in the world with dealers in 67 countries. They were producing a whopping 28,189 machines annually.
A few years later, The Great Depression began which negatively impacted the company and its sales dropped from 21,000 machines in 1929 to 3703 machines in 1933. It emerged from the Great Depression scathed but alive and was only one of the two American motorcycle manufacturers that survived. It again rose to its former prominence as it reproduced a large number of machines for the US army during World War II. Harley-Davidson received two Army-Navy ‘E’ Awards, in 1943 and 1945 respectively, for ‘Excellence in Production’. It also resumed civilian production of large V-twin motorcycles that were successful on racetracks and with private buyers.
The company evolved and by 1970, it become a lifestyle brand that sold jackets, vests, T-shirts, and various memorabilia to commemorate the Harley-Davidson lifestyle. By the 1980s, people were economically progressing after a long financial hiatus that led to soaring sales for the company.
A Screenshot from the Harley Davidson Website
The Recent History
The decade of the 1980s proved to be immensely profitable for the company. The group that consisted of Harley-Davidson motorcycle owners grew to 90,000 members and the company registered a profit of approximately USD 3 million in 1984. This number rose by another USD 1.5 million within a few short years. Harley Davidson continued on its growth trajectory right into the 21st century. By the year 2006, it reported aprofit of approximately USD 1 billion as its core owners’ group reached middle age and the stock price of the company peaked. However, it was also the last successful year of the company.
The Fall
The iconic company that had survived and grown through two world wars and The Great Depression fell victim to the economic recession of 2007 and it struggled with sales and stock prices plummeting between 2007 and 2009. This abruptly stopped the company’s new efforts to market its product to a younger and new audience that included women and children.
To survive this newest threat of the economic downturn, it reverted to producing bikes that its existing customer base wanted, resulting in loud, chopper styles and bulky motorbikes.
Harley Davidson – Total Worldwide Retail Sales
What they failed to take into account was that their current core customer base was aging and the brand had missed its chance of evolving with the times. By 2008, the average age of a Harley-Davidson owner was 50 years and the younger generation did not identify with the company’s bike styles or ethos. This was in addition to the high price point of the motorbike which made it unaffordable for the younger generation that did not have such high disposable incomes. The third strike against the brand was that its image was associated with middle-aged men and father figures.
Conclusion
The iconic company that, at one time, was at its peak and the leading manufacturer of motorbikes across the world, has failed to recover post the 2007 recession. Although its sales are better, it has not been able to capture its pre-recession numbers. The main issue is that their bikes do not attract the millennials at all. Today, a company that has survived multiple ownership arrangements, subsidiary arrangements, intense global competition, and periods of economic health and product quality is struggling for survival. Only time will tell if the company will succeed in reversing its fortunes.
Harley-Davidson motorcycles are built to with sturdy construction and innovative engines. Many parts are also easily replaceable, allowing riders to keep their bikes in top shape without needing to replace the entire machine.
What was the first Harley Davidson model ever produced?
The first Harley-Davidson motorcycle was built in 1903 and was named the Harley-Davidson Model 1.
Does Harley-Davidson sell lifestyle products?
Yes, Harley-Davidson sells lifestyle products like jackets, vests, T-shirts, and various memorabilia like home décor, ornaments, accessories, toys, and video games based on its motorcycle line.
What is the most popular Harley?
Some of the most popular Harley-Davidson models include the Sportster, Dyna, and Softail.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Hero Moto Corp.
Imagine walking for more than 100km? Imagine you have to reach a place immediately but don’t have a transportation system? Well, thanks to the automotive industries for coming up with motor vehicles. Automotive industries started in the 1860s with many manufacturers beginning manufacturing horseless carriages.
Most of the automotive industries began rising in Europe, and Asian parts, are also contributing to a large extent to the development of this industry.
This Indian multinational motor vehicle manufacturer, Hero MotoCorp Limited is one of the largest two-wheeler manufacturers in the world. Popularly known as Hero Honda changed its name to Hero MotoCorp in 2010. This automotive industry is 38 years old and has its headquarters in New Delhi.
Learn all about Hero MotoCorp’s startup story and its growth, founders and team, business model, revenue model, challenges faced, and future plans.
Hero MotoCorp engages in the manufacturing of motorcycles and scooters. Basically, the company is more into two-wheeler manufacturing, which makes them the world’s largest two-wheeler manufacturer as well as in India.
It boasts of providing its customers with varieties of two-wheelers that are not only comfortable but are aesthetically appealing. The company has eight production sites, including six in India (Dharuhera, Chittoor, Gurugram, Haridwar, and Gujarat) and one each in Colombia and Bangladesh.
As the biggest and greatest bike manufacturer in India and the “World No. 1” two-wheeler firm in terms of unit volume sales in a calendar year, the company earned the most coveted recognition in 2001 and continues to remain till now.
Hero MotoCorp – Founder and Team
The Hero Group, the parent organisation of Hero MotoCorp is founded by Brijmohan Lall Munjal.
Brijmohan Lall Munjal
Brijmohan Lall Munjal, Founder of Hero
Brijmohan was born in Kamalia in 1923, in a district of present-day Punjab, Pakistan. After moving to Amritsar, Brijmohan started selling bicycle parts with his three brothers. After a few years, he transferred to Ludhiana, where he started manufacturing bicycle parts under Hero Cycles Limited.
Quickly, he got the license for manufacturing bicycles from the Government of India with a financial capital of Rs 6 lakhs. He is a recipient of the Padma Bhusan Award by the Government of India in 2005.
He has also received the Lifetime Contribution Award by the All India Management Association in 2011, and the Forbes India Leadership Award for Lifetime Achievement in 2014.
Brijmohan was 92 when he died due to a brief illness on 1 November 2015. He was married to Santosh and has four sons and one daughter.
Brijmohan’s popular quote is, “DON’T DREAM IF YOU CAN’T FULFILL YOUR DREAMS”
Dr. Pawan Munjal
Pawan Munjal, Chairman and CEO of Hero MotoCorp
Dr. Pawan Munjal is currently the Chairman and CEO of Hero MotoCorp. He is one of the most qualified, and corporate leaders who have left his marks on socio-economic growth and technological innovation.
Due to his expertise in the field of leadership quality, he made the company achieve the coveted title of World No. 1 two-wheeler company in 2001 and has successfully retained this position to date for almost 20 consecutive years.
Dr. Munjal holds executive roles in important Indian industry organisations, including the Confederation of Indian Industry (CII) and Society of Indian Automobile Manufacturers, in addition to serving on the boards of other corporations (SIAM).
Besides, he also serves on the Board of members in many other companies namely, Munjal Acme Packaging Systems Private Limited, Pan Mining Private Limited, Indian School of Business, Hero Future Energies Global Limited, Rockman Industries Limited, and Bahadur Chand Investments Private Limited.
Hero MotoCorp – Startup Story
Hero MotoCorp’s history may be traced back to the idea of an independent, mobile India propelled by its two-wheelers.
Initially, it began its operations as a joint venture between Hero Cycles of India and Honda of Japan, which gave birth to the company under the name Hero Honda.
As mentioned, Brijomohan started manufacturing bicycle parts after getting the license from the Government. Soon after, the company got the status of ‘Large Scale Unit’ by making an annual production capacity of 7,500 cycles at that time. The company had grown to be the biggest bicycle manufacturer in India. In 1986, Hero Cycles was listed as the biggest bicycle manufacturer worldwide in the Guinness Book of Records.
After the success of Hero Cycles, Brijmohan decided to establish a two-wheeler company called Hero Majestic Company. Right after the establishment, the company started manufacturing Majestic scooters and mopeds.
Brijmohan entered into a contract with Honda, the largest automaker in Japan, in 1984. This was the beginning of a great partnership as the company set up a factory in Dharuhera, Haryana, alongside Honda. As a result of this, the first Hero Honda motorcycle, ‘CD 100’, hit the market on April 13, 1985.
By 2002, 16,000 motorcycles were produced on a daily affair and about 8.6 million Hero Honda motorcycles had been sold. This is how the company grew by reaching the hearts of millions of people.
Fate took its turn when Hero Group decided to split its ways from the Honda of Japan. The Munjal brothers decided to rename the company Hero MotoCorp in 2011. Even after the renaming, it was reported that the Hero Group would pay out royalties to Honda Company so that it can keep using its name Hero Honda till 2013.
The split was planned in a phased manner. The decision was planned in a way that – Honda’s 26% ownership investment in the JV Hero Honda would be acquired by The Hero Group.
As per reports, in locations of Nepal, Bangladesh, and Sri Lanka, Hero Group was not entitled to export under the joint venture; the termination would allow Hero Group to resume exporting. The Hero Group has always gotten its technology from its Japanese partner Honda.
After going through a lot of rift and differences between the two companies, Hero Group is now free and acts as an independent company. The company is also able to export to other countries like Latin America, Africa, and West Asia.
Hero MotoCorp – Mission and Vision
Hero MotoCorp’s goal now is to become the top two-wheeler firm worldwide by setting standards for design, functionality, and technology.
The company is very clear about its vision and that is “Be the Future of Mobility”.
The mission of Hero MotoCorp is to “create, collaborate, and inspire”. The company is quite firm about its mission to create and set benchmarks in the industry and inspire its co-workers to push the company to a global level.
Hero MotoCorp – Name, Tagline, and Logo
Previously, Hero MotoCorp was named Hero Honda Motors Limited after exiting the joint venture with Honda of Japan in 2011.
Hero Logo
The logo of the newly formed brand was designed by the British firm Wolff Olins.
Hero MotoCorp’s new tagline says, ‘Hum Main Hai Hero’ which means ‘There is a Hero in Every one of us’.
Hero MotoCorp – Business Model
Hero MotoCorp is a public company with a market capitalisation of ₹59,600 crores (US$7.8 billion) as of 2021.
Hero MotoCorp has a business-to-consumer (B2C) model as they manufacture motorcycles and scooters along with their parts.
The company is mostly involved in the design and development of technologically cutting-edge motorbikes and scooters for users worldwide.
Hero MotoCorp leads the path in the manufacturing world: and aims to be ‘A Global Brand’
It boasts of having over 100 million customers worldwide and persists to be on the top by bringing socio-economic progress and empowerment through its range of products and services.
Hero MotoCorp Key Products are:
Motorcycles
Xtreme 200S
Xtreme 160R
Xpulse 200T
Xpulse 2004V (Latest Edition)
Xpulse 200
Splendor+ Xtec
Splendor Ismart
Splendor+ Black and Accent
Splendor+
Passion Xtec
Passion Pro
Super Splendor
Hf Deluxe
Hf 100
Glamour
New Glamour
Glamour Xtec
Scooters
Pleasure+ Xtec
Maestro Edge 125
Maestro Edge 110
Destini 125 Xtec
Destini 125
Hero MororCorp has launched ‘Vida’-, which is an in-house electric vehicle brand of the company. In March 2022, the brand unveiled the electric vehicle to focus more on ‘Green’ sustainability.
The Chairman and CEO of Hero MotoCorp, Dr. Pawan Munjal says,
“Vida means life, and the brand’s sole purpose is to create a positive impact on the world and take us forward in meaningful ways. We believe the name is perfect for what we are building for our children and the next generation.”
The brand has also come up with an official Hero merchandise business.
Hero MotoCorp also indulges in providing service and maintenance for their customers. The company takes good care of its customers’ two-wheeler repair and maintenance through its extensive network of more than 6000 dedicated dealers and service outlets located across the country. The company offers continuous work to uphold its mandate of providing the best level of customer satisfaction.
The company also has workshops that have well-defined standards for servicing two-wheelers, a fully functional infrastructure, a staff of highly skilled service technicians, and quality precision equipment and pneumatic tools.
Hero MotoCorp provides free services for all its two-wheelers. However, for customers to use these free services they have to use them within the allotted time frame or mileage range, whichever is shorter, starting from the date of purchase.
Once the customers have used the free services, they have to continue using premium services following the suggested service schedule after the expiration of the free services or the period during which they were offered.
The foundation of Hero MotoCorp’s manufacturing facilities is sustainable development, as the company is committed to supporting the highest environmental standards.
The company has eight globally benchmarked manufacturing facilities, including six in India and one each in Colombia and Bangladesh.
Hero MotoCorp – Revenue Model
Hero MotoCorp saw a gain of profit of Rs 885 crore in the January-March quarter during the 2020-21 fiscal period in their annual report. However, its revenue from operations saw a decline to Rs 7,497 crore from Rs 8,690 crore in the fourth quarter of the fiscal year 2021. There was also a decline in their net income, which is now ₹2,982 crore (US$390 million).
Hero MotoCorp – Investments and Partnerships
Hero MotoCorp has the majority of investments in synergies. The company has partnered with International and national brands like:
Iconic American motorcycle brand Harley-Davidson
World’s largest battery-swapping network and EV maker Gogoro Inc.
Bharat Petroleum Corporation Limited (BPCL), India’s leading fuel distribution network.
At a Venture Funding round, Hero Motorcorp recently invested Rs 550 crore in Ather Energy on September 4, 2023.
Hero MotoCorp – Acquisitions
Hero MotoCorp has acquired a UK-based transmission technology firm called Hewland Engineering. The details of the sum are still undisclosed.
With this acquisition, Dr. Pawan Munjal says, “This investment represents a significant strategic inflection point for us in the transmission product segment. By combining Hewland’s comprehensive design and analysis capabilities with our ability to support high-volume manufacturing we are strongly positioned to offer full-stream transmission solutions to global OEMs and Tier One suppliers.”
Hero MotoCorp – Challenges Faced
Although Hero MotoCorp is a leading manufacturer of two-wheelers, it still poses tough competition from other competitors both in international and national markets.
One of the biggest challenges for the company is to come up with new products with unique designs. As per a report, Hero’s weakness lies in its lack of innovation that is, most of its products are designed similarly with no knack for new features or designs.
Hero MotoCorp – Competitors
The automotive industry, especially, the two-wheeler segment is one of the most expanding industries today.
The following are the top competitors of Hero MotoCorp are:
Baja Auto
TVS Motor Company
Honda motorcycles and scooters in India
Atul Auto
Hero MotoCorp – Awards and Achievements
Hero MotoCorp has received various awards and recognition.
Awards won by the company in the last few years are:
2020
Motorcycle of the year- Exhibit Auto Tech Awards 2020
Tourer Bike of the Year(up to 250cc) – Flywheel Auto Awards 2020
Business Leader of the Year Awards
Scooter of the year – Bike India
Bike of the Year up to 200 cc – Bike India
2018
Best launch – Two-wheeler at the CNB Auto Expo Awards for Excellence 2018
Highest Ranked Executive Motorcycle In Initial Quality – Hero Super Splendor
Bikesport award of the year – Times Auto Awards
2017
Hero Glamour – Commuter Motorcycle Of The Year – NDTV Car and Bike awards 2017
Indian MNC of the Year by All India Management Association (AIMA)
Manufacturer of the year – NDTV Car and Bike awards 2017
Hero MotoCorp – Advertisements and Social Media Campaigns
In October 2021, Hero MotoCorp launched an ad with a song, “Khushiyon Ko Do Raftaar”. The aim was to spread the message that the customers love to take that extra mile to make someone happy and that Hero MotoCorp is proud to be its customer’s trusted partner.
Hero MotoCorp – Future Plans
Even after having launched new products and taking the green initiative seriously, Hero MotoCorp is doing quite well in the industry by maintaining its status of World No.1.
Here’s what the CEO of Hero MotoCorp says, “This year will see Hero MotoCorp claim its position in the exciting clean mobility space in a bold avatar. Hero MotoCorp will transform its leadership in the internal combustion engine (ICE) market into the electric vehicle space globally.”
The company has also shared that in the FY 2022-23, the company’s recent launch of ‘Vida’ its first in-house Electric Vehicle (EV) will break the market shortly.
The company will develop and build a line-up of EV products, to offer mobility solutions to a diverse customer base around the globe. Hero MotoCorp will continue to invest in capability building, both in-house and through partnerships with global players, to capitalise on their unique strengths, and pave the way for expeditious adoption of sustainable mobility solutions over the coming years.
The company also plans to develop mobility solutions for a broad consumer base around the world. They wish to capitalise on their specific strengths and open the door for a swift uptake of sustainable mobility solutions over the coming years and will continue to engage in capability creation, both internally and through collaborations with global actors.
FAQs
Who is the founder of Hero MotoCorp
Brijmohan Lall Munjal founded Hero MotoCorp in 1984.
What is the revenue of Hero MotoCorp?
The revenue of Hero MotoCorp is US$4.2 billion as of 2021.
What is the business model of Hero MotoCorp?
Hero MotoCorp is a two-wheeler vehicle manufacturing company that manufactures two-wheelers like bikes and scooters.
Royal Enfield is easily one of the biggest brands from India founded by and has broken records in selling its motorcycle in India and abroad. But this wasn’t the case 20 or so years back, as Royal Enfield then was sitting on brink of bankruptcy. The automotive company has achieved its best-ever sales with over a million bikes that are sold worldwide. The company’s sales have also increased to about 27%.
Imagine if you brought a Royal Enfield motorcycle in 2001 you would now only have an old rugged bike. But if you would have invested the same amount in shares of Eicher Motors, the company that makes Enfield bikes your investment will be worth Rs 3.53 crore now. Despite operating in a niche segment, Royal Enfield remains one of the most admired motorcycle brands in India.
Royal Enfield is one of the flagship companies of the US 1.1 Billion Eicher Motors. It is an Indian motorcycle company with factories in Chennai, India. The company makes the Royal Enfield Bullet and other single-cylinder motorcycles. The company was established in 1955 and is one of the oldest motorcycles companies.
It first started out as a brand of the Enfield Cycle Company, a British manufacturing firm, then went out to produce the 500 cc bullets. It is a leading manufacturing company that manufactures bullets across the globe, was looking to upgrade its IT infrastructure using industry-leading solutions.
It has manufacturing plants in Thiruvottiyur, Chennai, Oragadam Chennai, Sipcot Industrial plant, Chennai and Campana, Argentina. The tagline of Royal Enfield is “Jab Bullet Chale Toh Duniya Raasta De” which sums it all quite beautiful as it is definitely a motorcycle that enjoys an overpowering presence as people have had to make way for it.
History of Royal Enfield
The Enfield Manufacturing Company Ltd was set up in England to manufacture bicycles. The company manufactured its products under the Royal Enfield Brand.
Not being satisfied with a limited product line of just bicycles, Enfield Manufacturing soon decided to focus on building other types of vehicles. In the year 1899, it started manufacturing a quadricycle called the Royal Enfield Quadricycle which was powered by a rear-mounted engine.
Royal Enfield Quadricycle
In 1901 Enfield manufacturing launched its first motorcycle fitted with a 239 cc engine. As a part of the global expansion strategy, Enfield started selling motorcycles in the Indian market in the year 1949.
In 1955, the Indian government placed an order for eight hundred 350cc Royal Enfield motorcycles for use by its police and armed forces. The Royal Enfield motorcycles were considered an ideal choice for the Indian army for patrolling the country border.
In 1990 Royal Enfield collaborated with the Eicher group an automotive company in India and merged with it in 1994.
In 2000 the company’s sales hit a low of 2000 units per month because it was suffering from problems like poor quality of its products, outdated design, change in taste and preference of customers and the entry of Japanese two-wheeler manufacturers in the Indian market.
Despite having a cult following among its fans many prospective customers saw Royal Enfield Brand as a relic from the past.
The man who is responsible for the tables to turn for Royal Enfield is none other than Siddhartha Lal is the man who is singularly responsible for Royal Enfield. Mr Lal has been credited with being able to make Royal Enfield a bike that is sold worldwide because of his dedication to the company. It was 2004 when Lal had taken over as COO of the Eicher group.
Siddhartha Lal – Former CEO of Royal Enfield
The group had a diverse spread of about 15 businesses including tractors, trucks, motorcycles, components, footwear and garments but none among them were a market leader. Lal decided to divest 13 businesses and put all money and focus behind Royal Enfield and trucks, two businesses where he believed the group had a genuine shot at leadership.
Lal decided to put his full force behind Royal Enfield and the trucks business. Immediately after taking over as CEO, Siddhartha analyzed the strengths and weaknesses of Royal Enfield and started to come up with a strategy to put the brand on its path to revival.
Buying Out Royal Enfield
The brand was surviving well in India until Japanese motorcycles began to enter the Indian market. This is when Mr Lal’s father who owned a tractor manufacturing company and was familiar with the way parts from Royal Enfield worked, swooped in to save the brand. Enfield was one of the biggest companies in South India, especially in the 60s and 70s.
Mr. Lal describes that “It was a bit of a tricky moment, and the firm was going bankrupt that’s when we bought it. My father got to know the people who were running the business because he was buying auto parts from Enfield for his tractor company. But we kept only one tiny portion which was the bullet factory and did not change the design because we liked the shape and the classic looks. We kept the character of the motorcycle, we kept the looks of the motorcycle, but we upgraded it to be relevant to people today.”
In order to pull the brand back from the edge of bankruptcy, the team decided to return to the brand’s roots to look for solutions that could help it soar once again. It is the only automobile Indian company that dint have a Japanese collaboration.
Speaking about this time, Mr Lal said, “They consulted many countries like US, Germany, Italy Austria and the UK to develop an engine or motorcycle, and felt that the UK understood us better.”
We found that engineering support that we could get in the Midlands was second to nowhere else in the world. In the Midlands, the team created the signature Royal Enfield Twin inceptor, which is what gave the bikes an additional boost of power that made them ideal for riding on the highway. This was a huge deal for the brand.
They had tapped into a huge consumer need that was not very vocalized. This allowed the brand to reinvent itself and become a lifestyle product that completely fit into the vibe of travelling and getting out in the world. This has made Royal Enfield quite popular with bike enthusiasts, making it the go-to bike for people who love to travel.
Increase in Sales
In 2005, the company was selling only about 25,000 bikes every year and needed a manufacturing scale and a fixed cost had to be spread around 100,000 bikes. Siddhartha Lal engineered and improved Enfield bikes by riding hundreds of kilometres himself and also initiated a motorcycling culture in the team. Under Lal, as quality improved, sales grew too.
By 2010, the company was selling 50,000 bikes, but on three platforms. That was when Lal decided to build all Enfield bikes on a single platform to maximize economies of scale. The Enfield Classic, launched from this single platform, caught the fancy of customers. Sales shot up six times in half a decade from 50,000 units in CY10 to 589,293 in CY14.
At this point, the sales were just enough to help the company break even. But soon, the tech economy in India began to boom in 2010, which brought about a turning point for the brand. Now, Eicher Motors earns over Rs 8,738 crore in revenues and makes a net profit of Rs 702 crore (FY14). Royal Enfield brings in about 80% of these profits.
Royal Enfield Bikes Sales Volume
Future of Royal Enfield
The prices of Royal Enfield were higher than that of the low powered Japanese motorcycle brands sold in India, but they were cheaper than the major global brands. And in order to keep the motorcycles affordable in the price-conscious Indian market, the company did not revise its prices even after the prospects of the brand started to improve in terms of sales.
Royal Enfield Model
Ex-Showroom Price
Royal Enfield Classic 350
₹1.52 lakhs – ₹2.18 lakhs
Royal Enfield Bullet 350
₹1.24 lakhs – ₹1.6 lakhs
Royal Enfield Thunderbird 350X
₹1.55 lakhs – ₹1.58 lakhs
Royal Enfield Himalayan
₹1.66 lakhs – ₹2.23 lakhs
Royal Enfield Interceptor 650
₹2.77 lakhs – ₹3.1 lakhs
The strong pricing power of the Royal Enfield brand and the improved operating margins rapidly increased the valuation of the company. In 2014, Royal Enfield recorded sales of 302,592 units.
The sales for the year were higher than even the worldwide sales of Harley Davidson for the first time in the brand history. By the year 2015, Eicher Motors had become one of the most expensive automobile stocks in India.
Eicher Motors Stock Price
As of Feb 2022, the stock price of Eicher Motors is ₹2,615.10.
Royal Enfield is an Indian motorcycle manufacturing company headquartered in Chennai, Tamil Nadu, India.
Who is the founder of Royal Enfield?
Robert Walker Smith and Albert Eadie founded Royal Enfield in 1955.
Who makes Royal Enfield motorcycles?
Eicher Motors Limited is the parent company of Royal Enfield that makes Royal Enfield motorcycles.
What is so special about Royal Enfield?
It provides a sense of strength and also a rustic charm. The brand has built itself from being an army bike to a cult classic. These bikes have a huge fan following and also there are several biking clubs exclusive to Royal Enfield motorcycles.
Rishabh Rathi
