After providing sales and services outside the country with the collaboration of home-based companies, now the premium motorcycle maker, Royal Enfield, has set up a new direct distribution subsidiary in North America. It is the first direct outlet outside the country, where the firm will be selling its entire range of motorcycles. The firm will also produce riding gear and accessories through this new outlet. Moreover, the current distributor of the Royal Enfield is Classic Motor Works (CMW), located in Faribault, Minnesota, would be transitioning out of distributing Royal Enfield motorcycles by the end of 2015. The company is offering Bullet 500, Classic 500 and Continental GT 353 Cafe Racer, which are priced between $ 4,995 and $ 5,995 (Rs 3.26 lakh to Rs 3.91 lakh). And, all the models will continue on sale from the new outlet.
The new subsidiary will directly sell motorcycles to the dealers and even to customers. The firm will also conduct all operations such as marketing, development, after sales and service for the brand in North America. The company wants to become the global player in the premium motorcycle segment (250-700cc) and North America is the key market for the Royal Enfiled. The new retail store of Royal Enfield in US will launch soon in Milwaukee and the company also plans to launch more retail stores in the metropolitan areas in the US over the next eighteen months. Thus, Royal Enfield has been exporting motorcycles to North America for the one and half decade.
Rudratej Singh, president, Royal Enfield, said, "North America is a key international market for Royal Enfield with a rich history of riding enthusiasts. Given the lack of attractive options in the mid-size segment, we are well poised to fill the gap and serve potential customers at a close, intimate level by localising our operations in North America."