On August 3, 2023, Royal Enfield parent company Eicher Motors released its FY2023-2024 Q1 financial results, reporting its highest-ever quarterly revenue. This achievement can be attributed to the strong sales of Royal Enfield motorcycles, with a total of 225,368 bikes sold in the quarter. This represents a 21.1 percent increase compared to the same period in 2022, when 186,032 bikes were sold.
Following the release of the financial report, Royal Enfield managing director Siddhartha Lal held a press conference to make an important announcement regarding the company’s electric vehicle (EV) project.
When traditional motorcycle manufacturers decide to pursue electrification, they face certain decisions. One key decision is whether to establish the EV side as a separate entity from the combustion side. Lal addressed this point, explaining how Royal Enfield intends to proceed.
“EV is very much at the core of Eicher Motors and Royal Enfield. Unless something dramatically changes, it will remain within the Royal Enfield and Eicher Motors’ fold,” Lal stated.
He emphasized that Royal Enfield and Eicher Motors explore all options and observe what others in the industry are doing, but they are not followers of trends. Lal also highlighted the importance of considering the core business and ensuring it does not become a sunset business. He expressed that EV will be the future growth engine for Eicher Motors and Royal Enfield, and it will continue to be part of Eicher Motors.
Lal also provided an update on the development of Enfield’s first electric motorcycle. He stated that the product is approximately two years away from hitting the market. The company is working diligently on the project, conducting tests on prototypes. Lal emphasized that they do not want to release an unfinished or subpar product and aim to be disruptive in the EV market. He mentioned that they are working on a completely different paradigm for EVs and that it takes time to create something truly fantastic. As per this timeline, Royal Enfield’s first electric motorcycle is expected to be launched in 2025.
While specific details about the electric bike have not been disclosed yet, it is worth noting that Eicher Motors acquired an equity stake in Spanish electric motorbike startup Stark Future in late 2022. Stark Future gained attention with its Stark Varg electric motocross bike, which achieved impressive sales of 1,000 units within 24 hours of its launch in January 2022.
It remains to be seen if Enfield’s electric future will involve collaboration with Stark Future in terms of powertrain development or chassis building. No official details have been released regarding this partnership. However, as more information becomes available, we will continue to follow the story and provide updates.