Royal Enfield, the two-wheeler division of Eicher Motors, has announced its entry into the Indonesian market, with plans to commence retail operations in the Southeast Asian country in the coming months.
The move into the third largest two-wheeler market in the world is part of Enfield’s growth strategy and “focused international thrust of leading and expanding the global mid-sized motorcycle segment (250-750cc)”.
“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,” Enfield’s head of international business Arun Gopal said.
“We will build our presence from Jakarta and depending on the response, expand our footprint to the other key cities in Indonesia.”
The manufacturer 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, Enfield will also build service and aftermarket capability in Jakarta.
Royal Enfield claims growth of over 50 per cent year-on-year in the last five years.
In 2014, Royal Enfield sold more than 300,000 motorcycles globally. Parent company, Eicher Motors, recorded its highest ever total revenue of $1.4 billion with large contributions from the Royal Enfield business unit.
In the current year, the company aims to produce 450,000 motorcycles to support its global growth strategy.