Insider information reveals Royal Enfield, the world’s largest midsize motorcycle manufacturer, is set to enter the 750cc segment in 2025. The company is working on a new platform, codenamed R, to serve as the foundation for multiple 750cc bike models.
The first project, R2G, will focus on developing a 750cc Bobber motorcycle, considering feedback from markets such as India, North America, Europe, and the United Kingdom.
The project, led by Royal Enfield’s tech centre in Leicester, UK, is expected to produce the largest motorcycle in the company’s portfolio, occupying the top position in its product lineup for several decades. This decision comes as premium motorcycle manufacturers like Harley-Davidson and Triumph prepare to introduce their midsize motorcycles, competing with Royal Enfield in its home market.
Siddhartha Lal, the Managing Director of Eicher Motors, Royal Enfield’s parent company, has consistently emphasized the company’s focus on midsize motorcycles ranging from 350cc to 750cc. This expansion will complete the powertrain portfolio, which includes engines ranging from 350cc to 650cc. If Royal Enfield were to develop motorcycles beyond the 750cc range, they would likely be in the electric vehicle (EV) category.
Insiders say that the 750cc engine is an evolution of Royal Enfield’s existing twin-cylinder 650cc engine, specifically designed to cater to key international markets such as North America and Europe.
The aim is to offer an upgrade option for hundreds of thousands of owners of 350cc motorcycles in emerging markets while also providing an attractive alternative for customers in more developed markets seeking a capable yet accessible bike from Royal Enfield.
Royal Enfield plans to introduce multiple product offerings for each engine displacement, whether 350cc, 450cc, 650cc, or 750cc. The company is exploring other ideas for future motorcycles within the 750cc range and the Bobber 750.
Pros of Royal Enfield’s entry into the 750cc segment:
- Expanded product lineup: Introducing a 750cc motorcycle will allow Royal Enfield to offer a more diverse range of products to cater to different customer preferences. This can attract new customers and provide existing Royal Enfield owners with an upgrade option within the brand.
- Increased performance: A 750cc engine will provide higher power and torque output than Royal Enfield’s existing 350cc and 650cc engines. This can enhance the overall performance and riding experience, particularly for customers who seek more power and acceleration.
- International market competitiveness: Entering the 750cc segment allows Royal Enfield to compete more effectively with other premium motorcycle manufacturers, particularly in key international markets like North America and Europe. It can help the brand establish a stronger presence and gain market share in these regions.
- EV potential: The development of a 750cc engine suggests Royal Enfield is also considering electric vehicle options for future models. This aligns with the global trend towards electric mobility and positions the company for potential growth in the EV market.
Cons of Royal Enfield’s entry into the 750cc segment:
- Increased competition: As Royal Enfield expands into the 750cc segment, it will face direct competition from established brands like Harley-Davidson and Triumph, also targeting the midsize motorcycle market. This heightened competition could challenge Royal Enfield regarding market share and brand differentiation.
- Pricing and affordability: While Royal Enfield is known for its affordable motorcycles, entering the 750cc segment might lead to higher pricing. This could potentially limit the accessibility of these motorcycles for some customers, particularly in emerging markets where affordability is a key factor.
- Brand perception: Royal Enfield has built a reputation around its retro-styled motorcycles with smaller displacement engines. Introducing larger displacement motorcycles might impact the brand’s perception and authenticity among its core customer base, who appreciate the classic appeal and simplicity of Royal Enfield’s existing models.
- Development and production challenges: Developing a new platform and engine can involve significant research, development, and production facilities investments. Royal Enfield must ensure efficient execution to meet quality standards and customer expectations while managing costs and maintaining profitability.
Royal Enfield’s entry into the 750cc segment has both potential benefits and challenges. On the positive side, expanding its product lineup to include a 750cc motorcycle allows Royal Enfield to offer more options to customers, attract new buyers, and compete more effectively in international markets.
The increased performance of a 750cc engine can enhance the riding experience and provide an upgrade option for existing Royal Enfield owners. Furthermore, the development of a 750cc engine suggests that Royal Enfield is considering future electric vehicle options.
However, there are also potential drawbacks to consider. Royal Enfield may face increased competition from established brands, higher pricing, and the impact on the brand’s image and authenticity among its core customer base. Additionally, developing a new platform and engine involves substantial investments and the need for efficient execution to ensure quality, meet customer expectations, and maintain profitability.
Ultimately, the success of Royal Enfield’s foray into the 750cc segment will depend on various factors such as market demand, customer reception, and the company’s ability to navigate the challenges effectively. Only time will tell how Royal Enfield’s expansion into the 750cc space will impact its position in the motorcycle market.