Royal Enfield motorcycle site Assembly study

Sao Paulo-the British Royal Enfield plans to expand gradually to your brand in the Brazilian market of motorcycles. New arrival to the country, the company is studying a future local assembly line.
"In the thread in which the Royal Enfield acts, of average cylinder capacity, the potential of the market in Brazil is huge," he said in an interview with the General Director of DCI brand in the country, Claudio Giusti.
Models in the range of 500 cubic centimetres and prices ranging from R $18900 R $24500, the brand sells the concept of "aspirational accessible". The Executive reports that competition motorcycles in the same category come to cost twice as much in Brazil.
"We have come to break the paradigm that bikes above 450 BMWs cost much, as if they were. And that''s not true. "
Giusti points as one of the key differentiators of the Royal Enfield the same design of your Foundation. "It''s a timeless motorcycle," assesses. "Produce the same bike, but with modern technologies, such as fuel injection and Euro 4 engine, for example," she adds.
Despite having been founded in England, the brand was acquired by an Indian group and currently the two Royal factories are located in India. "About 95 percent of our sales are still made in the Asian country," Giusti.
However, in the current investment program of the company, of $ $120 million, is covered by the construction of a third plant in India and the launch of Royal Enfield in Brazil.
"Much of the investment volume has been applied in the Brazilian market", says the Executive.
According to Giusti, Brazil, Thailand and Indonesia are priorities for the array. "International brand expansion passes obligatorily by the Brazilian market", he assures us.
Strategy
In a market that has sold 2 million bikes in 2011 and this year should not reach the half of that volume, if Brazil shows unknown for new entrants. But according to the Director of Royal Enfield, the potential exists.
"We want to show the Brazilian client it can migrate to a higher category and buy a differentiated product", says Giusti.
Unlike the concept of some trademarks, who disregard the average cylinder capacity segment, the Royal bet on slice of bikes ranging from 250 to 750 cubic centimetres.
"The average cylinder capacity segment has great potential in the country and the Royal can contribute a lot to this market. It is Pacific point to us ", he ponders.
The brand opened your first dealership in Brazil in last April, in São Paulo.
"The strategy is to sell enough in São Paulo and then expand to other places. Still cannot meet the demand, we have entire queue ", says the Executive.
The strategic plan provides for a period of three years. "At this time, let''s see how the market reacts to our product," explains Giusti.
In addition to a partnership with a Bank, the Royal claims get finance the bike up by credit card. "The client make a down payment and installment the rest."
Despite the difficult time for the brazilian economy and especially to the motorcycle market, which has been falling since mid-2012, the Executive believes in the retaking of the sector.
"The crisis is cyclical and has a political bias. But the Royal Enfield entered fairly consistent in Brazil ", he analyses. "And the Assembly of motorcycles in the country on our radar", assures Giusti.