Revving up for LatAm

YOU CAN'T JUST DODGE a Bullet. Playboy, famous for its centrespreads and articles, featured Royal Enfield’s (RE’s) rugged, single-cylinder, long-stroke motorcycles in the August 2010 issue of its Colombian edition. It’s a cult classic endorsement from the iconic men’s magazine for the Indian two-wheeler maker—the only one selling its retro-looking thumpers to developed markets like the U.S. Now RE is eyeing less developed markets in the Americas.

With exports accounting for 6% of total sales, Shaji Koshy, GM, sales and marketing at RE, explains the recent drive: “We kicked off operations in Bogota, Colombia, and Buenos Aires, Argentina, in early 2010. Mexico, Uruguay, Brazil, and Chile are next.” According to World Bank data, these countries had the highest GDP and purchasing power parity per individual in Latin America in 2009 (more than $13,000 or Rs 5.86 lakh) compared with, say, Paraguay (between $4,000 and $9,000). RE’s pricing for the region begins at $8,000.

The bikes originally came to India in 1955 as knocked-down kits, and were assembled by local manufacturers for the Indian Army. In 1956, RE began full-scale operations in India. Perhaps a little oomph will make for a smooth ride in Latin America.