Eicher plans to fire the Bullet at new targets

Near-total freedom for Enfield team headed by R L Ravichandran.

Eicher has drawn up plans to more than triple Royal Enfield sales from 30,000 units now to 100,000 in three years as a precursor to a big export push.

As part of the plan, the Rs 1,725-crore group has developed a new series of engines and new motorcycles, and given near-total independence to the Enfield management, headed by former Bajaj Auto marketing chief RL Ravichandran.

"We used to always apply the Eicher filter and the commercial vehicle DNA to Enfield, which is a consumer business. The Enfield management is now independent," said Eicher Group Chief Operating Officer Siddhartha Lal, adding, "Hopefully, we will be able to break big duopolies."

Hero Honda and Bajaj Auto dominate the motorcycle market, with TVS a distant third.

The new engine, internally referred to as unit construction engine, is intended to make the Roal Enfield Bullet more "approachable" for consumers, while providing the Japanese level of reliability and durability. The new engine will be an integrated unit, as opposed to the engine and the gearbox being two separate units in the current Bullet.

The new bike, said Lal, "will be a high-powered one and not in the core commuting segment". In other words, very different from Hero Honda's Splendor and Passion, or Bajaj's CT100.

"The opportunity in the commuter segment was there 15 years ago. The game there has been won and lost already," said Lal. Bullet has a niche overseas which also promises good margins.