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Royal Enfield today inaugurated its first direct distribution subsidiary in the Brazilian capital of Sao Paulo apart from opening its first stand-alone flagship store there.
Brazil is the fourth biggest two-wheeler market in the world and this subsidiary there makes the second one for the
Eicher Motors-owned twowheeler maker outside the country.
Royal Enfield opened its first direct distribution subsidiary outside the country in the US in 2015 as Royal Enfield North America.
The newly-formed subsidiary, Royal Enfield Brazil, will be selling to dealers, as well as conduct all front-end activities such as marketing and after-sales in the Latin American country. It's also present in neighbouring Colombia.
Royal Enfield president Rudratej Singh said the move will help it realise the competitive potential in the fourth biggest motorcycle market in the world. We see a huge opportunity in Brazil that has a hugely under-served mid-sized motorcycle market with a massive commuter base, he added.
Royal Enfield has entered Brazil with a line-up of three of its widely popular models featuring single-cylinder engines under 535-cc category such as the iconic standard street model -- Bullet 500, the retro street model - Classic 500, and the Continental GT (535cc) cafe racer, Singh said.
With a CAGR of over 50 per cent in the past six years, Royal Enfield has grown phenomenally, becoming one of the most profitable automobile brands in the world and the world's fastest growing twowheeler brand.
Royal Enfield sold over 6,60,000 units globally in fiscal 2017, and intends to ramp up its production capacity to up to 9,00,000 units by the end of 2018, as it the demand for its models are rising fast in the global markets.
As the oldest motorcycle brand in continuous production, Royal Enfield has made its first motorcycle in 1901 and is now a division of Eicher Motors.
It manufactures the Bullet, the Classic and Thunderbird models in 350 and 500cc displacement along with Continental GT 535cc cafe racer and the purpose built Himalayan powered by the LS410 engine from its Chennai plant.
Royal Enfield ships its models to over 50 countries including the US, Britain, Europe, Latin America and West Asia and Southeast Asia also operates 17 company-operated stores and 675 dealers in the country.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)