Royal Enfield moves through the gears amid growing competition in market

Competition in the middleweight segment and a growing market for electric bikes pose challenges for dominant two-wheeler player

Its cult status among customers made Royal Enfield a blue-eyed favourite of all its stakeholders. It appears to check the box for almost all brand-building criteria: Pedigree, fully-depreciated manufacturing units, a fan following, British history, antiquity value for used products, and demand that transcends borders. Plus, with operating margins of about 30 per cent (2017) the Royal Enfield is also one of the more profitable players in the industry with little competitive threat.

An auto player couldn’t wish for more. But rivals are watching closely.

In October, Japanese auto major Honda launched its H’ness CB 350 cc bike that blends old-world charm