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Royal Enfield Unveils a Bold Pricing Strategy

Announcements

 

Exciting news for all Royal Enfield enthusiasts and riders here in the U.S. In a recent move to reposition the brand, Royal Enfield has dropped its retail pricing dramatically, shifting up its efforts to lead the mid-size motorcycle market.

With increasing global demand and a new state-of-the-art factory, Royal Enfield has set its sights on becoming a worldwide leader in the growing midsize motorcycle market. (250cc-750cc) Siddartha Lal, the CEO and owner of Royal Enfield, kicked off the campaign by setting the tone immediately with the MSRP of the new 535cc Continental GT Café racer at only $5,999, much lower than industry observers expected.

Kevin Mahoney, the CEO of Classic Motorworks (the exclusive US importer of Royal Enfield), stated lowering the MSRP prices on the rest of the product line naturally followed suit from Siddartha Lal’s vision for the GT and the brand positioning overall. “We have always been a unique high value brand. Our high volumes (over 250,000 units will be sold globally in 2014) and increased efficiency allow us to make this aggressive move. We have lowered the MSRP on some of our products by almost $1,400. The suggested retail price range of the product line now starts at $4,999 and tops out at $5,999 for the new 535cc Continental GT. This effort in repositioning Royal Enfield as a brand will not only put more bikes on the road, but simultaneously gain more of the market share here in the U.S. We are thinking long-term with this move and feel the timing and the opportunity to grow even more will ensure success for Royal Enfield in the U.S.”

With an ever growing dealer network be sure check our dealer locater to find an Authorized Dealer nearest you. “Made Like a Gun” Get your Enfield today!

Kevin Mahoney
CEO Classic Motorworks LTD

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New video from the International Motorcycle shows

Random Notes

http://www.youtube.com/watch?v=HozuUYWY4fs&feature=youtu.be

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Great video about the launch of the Royal Enfield Continental GT

Best of the Web, In the News, Random Notes

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Continental GT Cafe Racer launched globally in London

Announcements, Random Notes

The new Continental GT Cafe Racer by Royal Enfield was launched this month in London England at the famous Ace Cafe. They should be available in US dealerships by the end of the year!!

http://royalenfield.com/continentalgt/gt-story/1950

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Picture of the new Continental GT in production

Random Notes

Great interview with Siddartha Lal the CEO of Eicher Motors about RE. Spot the new Continental GT Cafe Racer on the assembly line and test track.

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Bonneville Update – 120 miles an hour plus

Random Notes

Late breaking report from Dan Holmes and the Bonneville speed record team at the Bonneville Salt Flats. Today they made a run at just over 120 miles an hour on a Bullet. It was a Nitrous assisted Bullet at that.. On the return run they estimate that they were going about 130 when they suffered some problems. Even at that they came across the finish line at over 100MPH. More tomorrow

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Bonneville Salt Flats Speed Record Rides Again

Random Notes

I brazenly took this article from www.royalenfields.com written by the world famous Royal Enfield Blogger David Blasco.
It is worth subscribing to his blog. He has some of the most interesting articles about RE’s old and new.
I was part of the team Bonneville Team in the first attempt and have never had so much fun in my years with Royal Enfield. This is a great group of “grassroots” racers who exemplify the RE community.

WEDNESDAY, AUGUST 21, 2013
Bonneville Bullet races for world’s fastest Indian Bullet

Speed Record Attempt Royal Enfield



Going racing again is the Bonneville Bullet.

“Dyno Dan” Holmes and the Bonneville Bullet will return to the Salt Flats this week in a second effort to become “the world’s fastest Indian Bullet.”

His DRS Cycle team, based in Indiana, will use a partially streamlined 500cc Royal Enfield Bullet with crankshaft and cams by Hitchcocks Motorcycles and “hope to do 120,” Dan told the Royal Enfield Yahoo Group on Aug. 3. The Bonneville Bullet will compete both on gas and with a nitrous oxide system (NOS), he wrote. It will use a 22-tooth front sprocket.

Dan Holmes, left, with electrical engineer Jim Myers


In 2008 the team set three records with a road racing Bullet it brought along, but the semi-streamlined Bonneville Bullet was sidelined.

“Our nemesis last time with this bike was jetting. We were being cautious not to burn it up and were taking baby steps. Anyone who has jetting experience would understand that going down six jets sizes all at once is reckless! We ran out of time as many remember we were on the starting line with the engine running and they closed the track due to a fatality. In any event we are going back and we will make our best effort,” Dan wrote the Yahoo group.

The AMA Racing BUB Motorcycle Speed Trials are Thursday Aug. 24-29 this year at the Bonneville Salt Flats in Utah. Dan provided these details:

“Glen Kyle is our engine builder and Phil Myers is our tuner, Jim Myers has become our sponsor and our electrician, and tuner for the past few weeks…

“Once again we will be accepting donations to our PayPal account if anyone is inclined. We are still a grass roots race team, so thanks in advance!” The PayPal account is [email protected]

When you donate, include your name and address in the space provided for a note to Dan.

We will send a autographed photo of the team members and bike on a 8X10 to all donors. I will need them to include a mailing address of course,” he wrote me.

Aside from money, a volunteer is needed to update the team’s website. If you want to volunteer you can contact Dan at [email protected]

“Many people claim to have the worlds fastest Bullet, but they increase the displacement and so it is a frivolous claim,” Dan wrote. “I am hoping that DRS Cycle will prove to have the worlds fastest (500cc) Indian Bullet!”

Holmes was one of the early Royal Enfield dealers when the brand returned to the U.S. in the mid-1990s. His DRS shop in Indiana marketed a “shift kit” that cured some of the ills of the notorious left-side shift bodge on four-speed Royal Enfield motorcycles then being sold in the United States.

2008 attempt
I have added some pictures from the bike that the Holmes team won their class for 2003 ARMHA racing and earned the right to carry the #1 number plate and some other pictures from the first Bonneville attempt. You can see that Dan and his team are serious about what they do.

2008 Bonneville Bullet Team

Johnny Szoldrak on his way to earning the right to the #1 number plate in the 2003 AHRMA race series. Dan and team really worked hard to win this class

Engine and Nitrous system on the 2008 Bonneville Bullet

Dyno Dan - Bonneville 2008

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All new Royal Enfield Models

Announcements

All new "Tan" Royal Enfield Classic Model

All new Silver Royal Enfield Classic

All new paint scheme on the Black Royal Enfield Classic Model.

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Siddhartha Lal on Royal Enfield’s plan to become the world leader in mid-sized motorcycles

Random Notes

https://www.youtube.com/watch?feature=player_embedded&v=QCKGTi62a-Y#!

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Royal Enfield-maker Eicher Motors in overseas sales push

In the News

Royal Enfield-maker Eicher Motors in overseas sales push

Mumbai: Eicher Motors Ltd plans to export vehicles to Southeast Asia and Latin America as it builds on record sales at home.

The Indian maker of Royal Enfield, the World War II-era British motorcycle owned by stars including Brad Pitt, is predicting more demand in emerging markets for mid-sized bikes with an engine capacity of 250cc to 650cc as people become more affluent, managing director Siddhartha Lal said in an interview. Eicher, which acquired control of Enfield India in 1993 and revived the almost-bankrupt unit, is seeking to increase the share of revenue from two-wheelers from 16% of the $1.2 billion it reported in the year to 31 December 2012, he said.
“Mid-sized bikes are ideal for these markets as they are reasonably fuel-efficient, maneuverable and not too much more expensive,” Lal said in his office located in Eicher headquarters in Gurgaon near New Delhi. “There are markets that aren’t conducive to big bikes and the mid-sized market is underserved.”
The company is planning to expand the motorcycle business after reporting the best quarter at its Enfield unit, where sales rose 45% in the three months ended March. Eicher, which earns the remaining 84% of its revenue from trucks it makes in partnership with Volvo AB, said a key gauge of its profitability beat all local rivals in 2012 amid the slowest pace of economic growth in a decade.

‘Flying flea’
The former Tonight Show host Jay Leno and musician Billy Joel are also among the owners of Royal Enfield, according to their official websites. The British military used the bikes, including the ‘Flying Flea’ designed for parachute drops with airborne troops during the Second World War.
Royal Enfield, which makes the Rs.1.5 lakh 500cc Classic and the 350cc Thunderbird, saw sales jump 52% year fueled by demand from a rising middle class in India’s biggest cities.
Exports, catering to custom orders from buyers seeking to own a piece of history in countries such as the US, UK and Australia, accounted for 2.9% of the motorcycle maker’s 124,270 unit sales in the year ended 31 March, according to data from the Society of Indian Automobile Manufacturers.
“There’s a gap in this segment as vehicles like BMW and Harley Davidson are all above 600cc,” said Mukesh Saraf, an analyst at Spark Capital Advisors in Chennai. “If other Indian manufacturers like Bajaj are able to export, then Royal Enfield can do as well. There’s no way to gauge the potential of the mid-size segment both abroad and in India.”

‘Like a gun’
Bajaj Auto Ltd, India’s second-biggest maker of motorcycles exported 1.29 million motorcycles, or more than 33% of the 4.78 million it produced in the year ended March. The Pune-based company sells motorcycles ranging from the 100cc Discover to the 220cc Pulsar.
With its heritage as a weapons maker and ‘Made like a gun’ as tag line, Royal Enfield started in the 1890s making bicycles, lawn mowers and motorcycles in England. Since the 1940s, the company hasn’t much altered the technology in the single- cylinder engined two-wheelers except for modern features such as direct fuel injection and switch ignition.
The bike maker will introduce a new model, a 535cc ‘cafe racer’ called the Continental GT this year, while planning two more platforms for future variants, Lal said, without elaborating.

Waiting lists
The company last month opened its first new motorcycle factory in almost six decades, that can build 150,000 units annually. That capacity will be expanded to 250,000 in 2014, as Eicher looks to pare waiting lists that average 8 months, Lal said. Lal expects deliveries to jump 39% to 175,000 units in 2013.
The Enfield motorcycles are more for enthusiasts than for people who need vehicles to do their daily chores, which means Harley-Davidson Inc.’s lower-end bikes could pose a challenge for the Indian maker in these markets, said Mahantesh Sabarad, an analyst at Fortune Financial Services India Ltd in Mumbai.
“There’s a potential in these markets, but it will take a long time for them to build their brand,” he said.

Royal Enfield, whose Classic fitted with a sidecar featured in the movie Harry Potter and the Deathly Hallows: Part 1, says its master plan involves eventually building 500,000 motorcycles annually.
The company has its products planned for the next 10 years, Lal said without elaborating, as Eicher targets more customers beyond Delhi, Mumbai and Bangalore.
“Now, we’re firing on all cylinders,” says Lal. “To me, what’s relevant is that in the top 10-15-20 mid-size motorcycle markets in the world, we must be No. 1 or No. 2.”

First Published: Mon, May 20 2013. 08 44 AM IST in the “Live Mint & The Wall Street Journal 5/20/2013 http://www.livemint.com/Companies/Dt2jA34Gsdum7hR5OP6HzN/Royal-Enfieldmaker-Eicher-Motors-in-overseas-sales-push.html

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Enfield in Twighlight