Updated Jan 13, 2021 | 22:44 IST
The management is focused on the 250-750 cc segment and sees a double-digit CAGR growth in next 5 years. Representational Image
In a discussion with ET NOW, Vinod Dasari, CEO, Royal Enfield, highlighted two reasons behind the spurt in demand - namely pent up demand and substitution for public transport. He also mentioned that the smaller cities have registered higher demand compared to the bigger cities. The management sees high demand levels to continue through 2021 with dealer inventory at 2 weeks presently. The company has fixed most issues at its Chennai plant however production remains constrained due to shortage of steel supply.
Updated Jan 13, 2021 | 22:50 IST
He cited the example of their new launch Meteor, which most customers designed on their mobile or on the in-store configurator. This has further reduced inventory levels and overhead expenses. Representational Image
ET NOW caught up with Vinod Dasari, CEO, Royal Enfield to understand the company’s growth plans and how they plan to sustain their high margins. Dasari mentioned that RE has become a global brand and is exporting vehicles directly from its Chennai plant to the US, Europe, South Korea and Japan.
While the management is open to acquisitions, in the EV space particularly, they are on wait-and-watch mode presently. Further, Dasari highlighted that company plans to develop its own EV technology. They have manufactured few EVs however the launch will be based on market conditions and government support.