Royal Enfield enters Indonesian market

Royal Enfield has entered Indonesian market targeting mid-size motorcycle segment and an exclusive store in Jakarta, the company said Monday, adding that the move into the world’s third largest two-wheeler is part of its growth strategy and international thrust to expand its presence in the mid-sized motorcycle segment (250-750cc).

The company announced the foray at GAIKINDO Indonesia International Auto Show 2015. The two-wheeler major displayed its range of motorcycles at the show including the Bullet 500cc, the retro-street models – Classic 500cc and Classic Chrome and the Continental GT (535cc) cafe racer.

Abhijit Singh Brar, head of marketing for Royal Enfield, said the company will commence retail operations soon from its exclusive dealership in Jakarta that is being set up in partnership with PT Distributor Motor Indonesia. In addition to the store, they will also build service and aftermarket capability for Royal Enfield in Jakarta.

Backed by a growth of over 50% year on year in the past five years, the company is aiming to lead and grow the middle-weight segment, which is underserved globally. The move to enter Indonesia is part of the company’s larger growth strategy which includes a thrust on expanding its international presence.

The company believes this growth will largely come from markets like India such as Latin America – it entered the Colombian market last year – and South East Asia, given their size and comparable commuting trends.
Indonesia is a strategic market for Royal Enfield. With its large commuter based, this market has enormous potential to upgrade to the next level of motorcycles, should there be optimal product choice.

“We will build our presence from Jakarta and depending on the response, we will expand our footprint to the other key cities in Indonesia,” said Arun Gopal, head for international business at Royal Enfield.
In 2014, Royal Enfield sold more than three lakh motorcycles globally. In 2015, the company aims to produce 4.50 lakh motorcycles to supports its growth strategy globally.