Building on its century-old legacy of crafting iconic motorcycles, Royal Enfield is taking a bold leap into the future with its premium electric Flying Flea, reimagining urban mobility while staying true to its heritage of distinctive design and engineering excellence.
11 Dec 2024 | 5230 Views | By Ketan Thakkar
Having secured the number one position in the global mid-size bike market, Siddhartha Lal, managing director & CEO of Eicher Motors Ltd, has placed a new bet on the emerging electric motorcycle market. At the EICMA 2024 – the Milan Motorcycle Show – Royal Enfield premiered its all-new electric bike, ...
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Having secured the number one position in the global mid-size bike market, Siddhartha Lal, managing director & CEO of Eicher Motors Ltd, has placed a new bet on the emerging electric motorcycle market. At the EICMA 2024 – the Milan Motorcycle Show – Royal Enfield premiered its all-new electric bike, the Flying Flea.
Building on its storied past of over 100 years of producing classic motorcycles, Lal believes the brand's entry into the EV space marks the start of a new, defining chapter of the company's history which will last for the next 25 years. He shared his vision with the media at EICMA, highlighting how the expansion into the electric vehicle (EV) space is an essential pillar of growth for the brand's future.
How ready is the bike?
The bike is currently being tested for C6 and S6 models. Overall, everything is ready; the geometry is set. We took the bikes for a ride in Barcelona and are collecting key feedback from those rides. Some fine-tuning may be required in areas like suspension settings, seat comfort, and tyre adjustments. The seat, for example, could use a bit more comfort. But in terms of dynamics, the bike is ready. The design and form factor won't change dramatically, but there may be slight tweaks based on the feedback.
How do you intend to position the EVs, and what are their future prospects?
For the last 25 years, our focus has been on mid-size motorcycles, and we've done very well in that segment. We've grown the market globally. Now, EVs are literally the next big thing for us. While we continue our mid-size journey, which will not stop, our approach to EVs has been different. The typical question might have been, "Can we make an electric version of our existing bikes?" But we pushed ourselves further and chose to look at EVs with a fresh lens.
We are not interested in scooters or motorcycles aimed at the mainstream market. Our focus is on the city-plus environment, where we're targeting a more premium segment. This will be a step above entry-level offerings, and that's how we plan to position the Flying Flea globally. Interestingly, India may not be our primary market for this product. While India is always important to us, there are other markets where we anticipate better traction initially. Over time, India will also gain traction, but this product opens up a new space that we wouldn't have entered with petrol-powered bikes.
Since the Flying Flea is a premium product, we hope people will upgrade to it or use it as an alternative to mainstream scooter upgrades. It's not just about upgrading the product; it's an upgrade in every way—in style, performance, range, price, and more.
What is the market rollout plan for the Flying Flea?
We don't plan to launch full-scale country-wide campaigns immediately. Instead, we'll focus on key cities like Bangkok, Sao Paulo, and Rio. This strategy is consistent with how we expanded our ICE (internal combustion engine) bikes. For example, in Thailand, we concentrated on building our presence in Bangkok before expanding to other regions. Similarly, we may apply this strategy for the Flying Flea. The rollout is still a work in progress.
Automakers are adopting innovative finance schemes and offering options like Battery-as-a-Service. Would you explore them?
Absolutely, we're exploring such options, and they are part of our strategy moving forward. As we refine our retail and sales strategy, we're considering all possible ways to reach buyers. We're also evaluating how to sell the bikes—whether through our existing channels, new channels, or even a combination. Omni-channel sales, including direct-to-consumer options, are also on the table. The approach might differ from market to market, but we are exploring these avenues.
We're certainly looking into battery-as-a-service. In some markets, outright purchases may not be the preferred model. Depending on the market, we may offer other options, like instalment purchases or battery leasing. These are areas we are actively working on.
Royal Enfield is known for the distinctive sound of its motorcycles. What will happen to the sound in the EVs?
(Laughing) You'll get a sound of silence! But more seriously, I completely understand what you're asking. However, our main concern is the character of our EV motorcycles. When people think of our petrol bikes, they have a specific impression, and we've worked hard to differentiate our EVs.
The petrol two-wheelers have been around for a long time, and they share certain similarities. But the opportunity for differentiation with EVs is much higher, especially in areas like response, performance, looks, and user interface.
EVs are intrinsically silent vehicles, and they cater to a different audience. The new generation of buyers, especially the younger demographic who have grown up with mobile phones and technology, isn't as interested in mechanical aspects like oil, sound, and exhausts. They prefer something clean, simple, silent, and beautiful, with a great user interface. This is a different market, and we've had to reinterpret ourselves to cater to it.
That's why we named it the Flying Flea—it's different. This design was inspired by our Classic bikes, with the C6 being the first bike inspired by the Flying Flea. The S6 takes it a step further, and as we continue, there will be more interpretations of this concept.
How do you see the EV market evolving? Does the global market seem to be a priority over India?
We have high hopes for the Indian market, but we still need to figure out how the EV application will work here. In India, people primarily view EVs as a utility. However, there will be buyers who are willing to pay a premium for something that is different and beautiful. We believe that the premium market in India will grow, but it's not as straightforward as it is in places like Europe or California, where buyers are willing to pay for something based purely on its aesthetics and performance.
In India, the equation is a bit more complex, and we still have work to do to make the Flying Flea suitable for Indian buyers. We're exploring different ways of selling the bike—whether through direct sales or other models. We have to understand how Indian consumers will approach purchasing, owning, and maintaining EVs, which may not be as simple as sticker price considerations alone.
How is Royal Enfield perceived globally?
Royal Enfield is viewed as an emerging, fresh brand with deep traditional roots. People recognise that while our styling is modern, the ethos of our bikes—how they behave and perform—retains its heritage. In many ways, Royal Enfield is seen as a solid, forward-looking brand, not a fly-by-night operator.
We have strong service, support, parts availability, and a well-established distribution network. Wherever we go, dealers love working with us. We don't push stock on them; instead, we support them in retailing, ensuring long-term relationships. With these foundations, we've built a solid presence that's now considered by many as a mainstream option for buying mid-sized bikes.
Royal Enfield is now a serious consideration for consumers in more than 70 countries. The brand is increasingly seen as a dependable choice rather than just a quirky or wild card option.
Do people perceive Royal Enfield as an Indian or British brand?
It's a bit of both. While the brand still celebrates its British roots, it's very much an Indian brand now. The story is interesting—Royal Enfield was British once but is now owned and made in India. That duality adds to the brand's appeal.
What are your international growth ambitions?
About 11% of our volumes and 15-17% of our revenues come from international markets. We have set up multiple international subsidiaries and CKD (completely knocked down) facilities, bringing us closer to our global markets. We're steadily increasing our market share in several countries, and in many regions, we're climbing into the top 2 or 3 bike makers. As we continue expanding, we expect our international market presence to grow significantly, reaching grander scale in the years to come.
How has your association with Stark Motorcycles been? Are there any plans for acquisition?
At the moment, an acquisition is not on the cards. Our investment in Stark Motorcycles is strategic. We see their expertise in areas like lightweighting, material usage, modularisation, and battery management technology as valuable. They've also made significant strides in electronic solutions, and we're learning from those innovations. This partnership is less about acquisition and more about gaining insights and technological advancements that we can apply to our own products.