First Royal Enfield Electric Bike Will Come By 2025: Reports

India's leading motorcycle manufacturer, Royal Enfield, is planning to invest Rs. 250–300 crore in its electric vehicle (EV) strategy. According to reports, the company has already acquired 60 acres of land outside Chennai and is building a third plant at this new facility. The plant is expected to be operational by 2025 and will have an annual production capacity of 1,50,000 units. The company will manufacture its upcoming premium electric motorcycle from this new plant, with a tentative launch in 2025, according to a media report.

In an interview with a media outlet, Royal Enfield CEO B. Govindarajan said that the company is already working on electric vehicle platforms and plans to launch its first premium electric motorcycle by 2025. "We spent two years assessing the market and understanding what the customer wants from Royal Enfield. We are now in investment and execution mode and are establishing our supply chain. We promise to bring a disruptive, gorgeous motorcycle to customers by 2025," he said.

While the capital allocation towards electric vehicles is likely to grow year on year, Royal Enfield plans to continue investing in its internal combustion portfolio to grow both domestically and in international markets. The company already has completely knocked down (CKD) plants in Thailand, Brazil, Columbia, and Argentina and plans to begin assembly in Nepal by next month, followed by Bangladesh next year.

"Royal Enfield has 1,100 retail outlets abroad. We are looking at expanding outlets in all countries where we are. The addressable market is almost a million units outside India, of which our market share is 7-8%, and we see huge headroom for growth. The international market is at an inflection point for Royal Enfield. We see good growth in exports over the next decade," Govindarajan added in an interview with a media outlet.

When asked whether Royal Enfield will raise capital for its EV program, the CEO said that the company has strong cash reserves and, at this stage, there is no need for outside capital. The company will fund its entire EV rollout on its own. A dedicated team of 60 professionals is working on Royal Enfield's EV portfolio.

Govindarajan, while speaking on the collaboration with electric performance motorcycle maker Stark Futures, said that Royal Enfield was helping the European company scale up production and its supply chains, while Stark Futures is supporting Royal Enfield with motors, battery technology, and precision electronics.