Indian motorcycle maker Royal Enfields bids goodbye to Vietnam
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Indian motorbike maker Royal Enfield is pulling out of Vietnam after a disappointing four-year run.
Al Naboodah International, the official distributor of the brand, said the decision was made since business results did not meet expectations.
It said since Royal Enfield vehicles are imported from India they do not get import tax waivers like other brands such as Honda, Ducati and Kawasaki, which are shipped from Thailand.
Another reason for the poor sales was that the retro and classic designs of Royal Enfield motorcycles were not popular in Vietnam, it said.
It did not disclose sales figures.
But it assured that warranty and maintenance services would continue uninterrupted.
Al Naboodah International also represents also two other brands, Triumph and Harley Davidson, in Vietnam.
Royal Enfield was originally the U.K.’s Enfield Cycle Company Limited established in 1901.
In 1955, it and its Indian partner, Madras Motors, founded Enfield of India with a factory in Chennai that produced the first batch of 800 Royal Enfield Bullet 350 cc engines for the Indian government.
When Royal Enfield ceased operations in the U.K. in 1967, Enfield of India continued to operate and was acquired by tractor and commercial vehicle manufacturer Eicher Group Limited (India) in 1994.
The company later changed the name to Royal Enfield Motors Limited.
Questions & Answers
Q.Why did Royal Enfield decide to cease operations in Vietnam?
Why did Royal Enfield decide to cease operations in Vietnam?
The official distributor stated that business results did not meet expectations. This was partly due to import tax issues and the retro designs of the motorcycles not being popular in the Vietnamese market.
Q.Which brands in Vietnam benefit from import tax waivers that Royal Enfield did not?
Which brands in Vietnam benefit from import tax waivers that Royal Enfield did not?
Brands such as Honda, Ducati, and Kawasaki benefit from import tax waivers in Vietnam. Their vehicles are shipped from Thailand, whereas Royal Enfield vehicles were imported from India.
Q.Will existing Royal Enfield customers in Vietnam still receive warranty and maintenance services?
Will existing Royal Enfield customers in Vietnam still receive warranty and maintenance services?
Yes, Al Naboodah International, the official distributor, assured that warranty and maintenance services for Royal Enfield customers would continue uninterrupted despite the brand's departure.
Q.What other motorcycle brands does Al Naboodah International represent in Vietnam?
What other motorcycle brands does Al Naboodah International represent in Vietnam?
Besides Royal Enfield, Al Naboodah International also represents two other well-known motorcycle brands in Vietnam. These brands are Triumph and Harley Davidson.
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