Wednesday, March 27, 2013

250cc rumors quickly quashed

A news item had been circulating claiming Royal Enfield was planning a 250cc machine to compete with Honda, Bajaj and the other leading sellers in India. The sub-250cc is by far the largest segment of the market in India, where bikes are largely bought out of necessity and not for leisure. Customers are cost-conscious not only at the time of buying the bike but also about fuel consumption. Even the 70+ mpg of a Royal Enfield is seen as a luxury. However, the rumor has been quickly denied (see also here). I think it is a wise decision not to enter that segment of the market. It would compromise the image Royal Enfield is trying to project, not to mention put it in direct competition with long established competitors. A 250cc machine has been in the Enfield lineup since 1911 till the demise of the Redditch factory in 1967. The one in the picture is a 1963 Clipper.

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