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Iconic motorcycle brand Royal Enfield is in the “advanced” stages of developing its first electric motorcycle, due to launch next year, as global manufacturers ramp up investment to try to tap into the burgeoning high-performance electric motorcycle market.
Founded in the English Midlands in 1901 and relocated to India, Royal Enfield calls itself the world’s longest-running motorcycle brand and has expanded globally in recent years, from the US to Thailand, gaining a cult following for its retro bikes.
Royal Enfield chief executive B Govindarajan told the Financial Times that the reduction in the cost of electric vehicles will enable the company to launch its first model in the next fiscal year, starting in April 2025.
“We’re going to focus on a beautiful-looking, very differentiated electric vehicle,” he said, adding that while “nobody is making money in the electric world right now… the cost of an electric vehicle is changing rapidly.”
“A year from now, when we hit the market with the product, we will be competitive,” Govindarajan said.
Electric vehicle sales growth has slowed around the world as manufacturers struggle to maintain driving range and meet high costs, and developing high-quality electric motorcycles has proven particularly challenging.
Compared to four-wheeled vehicles, motorcycles have limited space for batteries, requiring more frequent charging or replacement, while profit margins are lower than those for internal combustion engine-powered motorcycles.
Govindarajan said Royal Enfield would likely opt for a “fast-charging fixed battery” instead of a battery swap. Anuj Dua, head of Royal Enfield’s Asia-Pacific business, said its electric bike was in the “advanced development” stage.
In Japan, Yamaha Motor has set an ambitious goal of making 90 percent of its motorcycle sales electric by 2050, but the group was forced to postpone its previous goal of selling 10 electric models by the end of this year to mid-2025. Honda plans to invest 500 billion yen ($3 billion) over the next decade, aiming to sell 4 million electric motorcycles a year by 2030.
U.S. motorcycle manufacturer Harley-Davidson this month received $89 million in federal funding to expand production of its electric motorcycles in Pennsylvania.
In 2022, Royal Enfield invested in Spanish electric motorcycle maker Stark Future. It then previewed an electric prototype of its 450cc Himalayan motorcycle at last year’s Milan motorcycle show.
Analysts say producing high-performance, commercially viable electric motorcycles remains a challenge.
“For an electric vehicle to produce that kind of performance, power and torque … is very challenging,” said Varun Baxi, an auto analyst at Mumbai-based stockbroker Nirmal Bang. “The technology has to be more advanced.”
Royal Enfield has seen rapid growth in India, the world’s largest motorcycle market by sales volume, dominating the market for “mid-size” models popular with affluent Indians.
They are larger than India’s ubiquitous budget scooters, but smaller than the premium bikes made by brands like Harley-Davidson or Triumph. The models typically cost between Rs150,000 ($1,800) and Rs400,000 each.
However, the company has been losing market share as more domestic and global brands launch mid-size models in India, prompting it to turn to exports for growth.
In India, the transition to electric vehicles has so far been led by scooters, with companies such as Ola Electric and SoVscekBank-backed Bajaj developing models costing around Rs 100,000.
Ola made a successful stock market debut on Friday, in India’s largest initial public offering (IPO) this year.
The Indian government has launched subsidy programs to accelerate the transition to electric vehicles and attract global manufacturers like Tesla to set up factories in the country, with mixed results so far. Royal Enfield’s parent company, Eicher, has applied for subsidies under India’s production-linked incentive program for electric vehicles.
Govindarajan said that while the adoption of electric motorcycles “would take some time,” it is moving faster than initially expected. “India is very committed as a country to adopting the technology,” he said.
