The sharp QoQ drop is concerning, and easiest assumption is to conclude that TRIUMPH and HARLEY gaining good traction. But having said that I feel Royal enfield brand is quite formidable.
The way the company builds a community of riders and cultivates feel good factor surrounding it.
Their impressive sales figures and reviews in European and east Asian markets where triumph already exist shows that they thrive in markets along with other premium player.
One common theme among all royal Enfield reviews (including foreign) is that it may not be chart topping in terms of spec sheet but nevertheless it brings smile to the rider. Thats a real moat which is not easy to replicate.
Royal Enfield captured the Indian market when their bikes were technically far inferior only because of the brand pull . With the introduction of 650cc engine in 2018,J series engines in 2020 and sherpa engine in 2024 that’s no longer the case. Thay have power of brand and technical perfection coming together.
So I think days ahead are going to be sweeter. As the CEO mentions market share may fall below 90%, but the premium segment as a whole will grow and RE will be at least 75% leader in the space.
Forms 20% of my portfolio.Holding since 2020
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