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Royal Enfield, a renowned motorcycle manufacturer, is gearing up to enter the electric vehicle market with its new electric bike, the C6, under the brand name Flying Flea. The company has announced an initial launch in developed markets such as Europe and the US, prioritizing these regions for the premium product's debut. The C6, with its classic styling, is expected to hit the market in early 2026.
Sidhartha Lal, MD and CEO of Eicher Motors, the parent company of Royal Enfield, emphasized that while India is a key market for them, Europe and the US are expected to experience better initial traction for the C6. Lal highlighted that the electric bike will allow the company to tap into a new segment, one that they wouldn't be able to cater to with their petrol bikes.
The strategy behind focusing on developed markets lies in the premium positioning and pricing of the C6. Royal Enfield anticipates a higher demand for their electric bike in countries with greater purchasing power. They are also exploring various sales strategies for the C6 in different markets, including outright purchase and installment purchase options.
Royal Enfield plans to manufacture the C6 at their new plant in Chennai, which will have an installed production capacity of 1.5 lakh units per annum. While acknowledging the growing electric vehicle market in India, B Govindarajan, CEO of Royal Enfield, noted the slow adoption rate due to the dependence on subsidies. He indicated that the total cost of ownership for electric vehicles is becoming more appealing but it will take time for consumers to fully embrace them.
In terms of investments in the electric segment, Royal Enfield has applied for the PLI scheme along with VECV, requiring a minimum investment of Rs 2,000 crore. This indicates the company's commitment to the electric vehicle market. Royal Enfield's focus on the electric segment reflects their desire to disrupt the industry and not merely participate in it. The company is confident in the potential of this new family of electric products, under the Flying Flea brand, to grow and evolve over time.
The company has decided to source battery cells from external suppliers while producing other components, such as battery packs and motors, in-house. Royal Enfield's decision to launch the C6 in Europe and the US before India is a strategic move aimed at capturing the burgeoning electric vehicle market in these regions. This market entry aligns with the company's ambitious goals to diversify their portfolio and cater to a wider customer base.
Source: Royal Enfield's Electric Bike C6: European & US Launch First