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Focus on motorcycles, not looking at new segments: Eicher Motors

Press Trust of India  |  New Delhi 

will focus on its business through and will not look to enter new verticals in the wake of failure of its off-road vehicles joint with US-based Polaris, a top said.

The company, which currently has a 50:50 joint with for trucks and buses (VECV), had recently announced shutting of another JV -- Eicher Pvt Ltd (EPPL), which produced and sold personal utility vehicle Multix - in March this year.

"We are aboslutely 100 per cent focussed on motorcycles, nothing else...Other than motorcycles we don't have any intention to get into any other vertical," Managing Director and said in a concall.

Royal Enfield, the arm of Eicher Motors, sells mid-sized motorcycles both in and overseas markets.

When asked after the EPPL experience, if the company would consider getting into four-wheeler segment again, he said, "Abosolutely (we are) not open to anything...Of course VECV is the only other part of our business, which is doing very well. We are in the process of winding up EEPL operations".

On Royal Enfeld's plans for expansion in global markets, he said, the company is in the process of establishing wholly-owned subsidiaries in and and may go for there at a later stage.

"We are extremely bullish about these two markets. We have seen very good traction for in these markets. So, the first step is to set up a marketing company," Lal said.

now has over 540 dealerships across 50 countries and 36 exclusive stores, 11 of which were opened in 2017-18.

For the current fiscal, Royal Enfield has earmarked a capex Rs 800 crore. The investment would go towards various activities, including setting up of second phase of the company's third plant at Vallam Vadagal near Chennai, completion of construction of the Technology Centre in Chennai this year and development of new products.

The planned production capacity for the current fiscal is 9.5 lakh units, the said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sun, May 13 2018. 10:05 IST