Eicher Motors Ltd said it will raise prices of three of its ‘Royal Enfield’ motorbike models from Sept. 1, due to a rise in raw material costs.

Eicher will hike prices of its Standard 350, Machismo 350 and Machismo 500 models, the commercial vehicles maker said in a statement.

There were no immediate plans to raise prices of trucks and buses, the spokeswoman said.

Earlier this month, India’s top motorbike maker Hero Honda Motors had raised prices of some models to partially offset the high input costs.

Shares of Eicher closed up 2.85 percent at 280.05 rupees in the Mumbai market.

THE world’s longest surviving production motorcycle, the Royal Enfield Bullet 350, which has been made non-stop since 1955, will soon no longer be available in UK showrooms as ever-tightening European emissions laws are forcing the old-timer off the road for good.

UK importers are down to their last 100 machines.

The Bullet 350 has been made in India since the British factory closed in 1967.

Priced at £2,495, Royal Enfield is confident that: “demand for the final 100 machines will outstrip supply.”

From 2009 the Bullet will be only available with a new 500cc engine that satisfies European emissions regulations.
Source: www.motorstoday.co.uk

Royal Enfield, the world’s oldest surviving motorcycle company, built more than 38,000 motorcycles last year, a jump of nearly 20 per cent in annual sales over the previous year.

The figure should please Siddhartha Lal, chief executive of Eicher Motors, the Indian truckmaker that owns Royal Enfield, especially since two years ago he considered selling out.

“We don’t want to be in the mass market,” said Mr Lal in an interview with the Financial Times at Eicher’s offices in New Delhi. “We don’t want to reach millions. Just tens of thousands. We want to get good returns on a relatively small base.”

This strategy contrasts with Eicher’s recent joint-venture with Volvo that aims to grab an aggressive share of India’s truck market from competitors including Tata Motors and Ashok Leyland. It reflects Mr Lal’s desire to keep Royal Enfield a brand with a distinctive, retro, identity.

“What people want is individuality. They want to be associated with something different. It adds to your character,” said Mr Lal. “It’s British, it’s Indian. It’s earthy and real. The charm is difficult to describe but you can relate to it.”

Royal Enfield’s revival is being driven by demand from customers interested in retro designs in markets including North America, Germany, Japan and the UK – its largest export market.

When Eicher acquired Royal Enfield in 1994 the brand “had lost its lustre”, admitted Mr Lal. In spite of its classic models such as the Bullet and the Flying Flea, Enfield struggled after lighter, more agile Japanese brands entered India in the 1970s. Today the motorcycle maker markets itself as a lifestyle brand and collectors’ item, though most Indian owners use the bikes for routine commutes and the Indian police still use Enfields.

The company exported 2,600 bikes last fiscal year, compared to 1,800 the previous year. Although exports accounted for less than 7 per cent of sales, the company hopes to boost that number to 25 per cent by 2010.

A new version of the classic Bullet (the bikes were said to be made like a gun and go like a bullet) destined for export markets meets European emissions and safety standards. Meanwhile the powerful 500cc Bullet Machismo was rolled out in India last year.

Over the past two years, Eicher has spent about $6.25m on upgrading bikes and renovating its factory in Chennai. It plans to invest roughly that amount annually on capital expenditure for the next few years.

Royal Enfield has also embarked on a new marketing campaign by redesigning stores across India; investing in a sleek print ad campaign featuring striking real-life Enfield owners; and showcasing group rides such as the Himalayan Odyssey, a 15-day tour that started last weekend in New Dehli. It includes 50 Enfield bikers from around the world.

Source: www.ft.com