With hints that “modern, classic” electric motorcycles will be revealed, Eicher Motors plan a premium EV line of bikes.
With the extreme demand for EVs in India, Eicher Motors, the parent company of Royal Enfield, has started it’s plan for a complete new range of electric motorcycles with different sets of customers in mind. While the current line of Royal Enfield motorcycles is all Internal combustion engines, Eicher Motors announce their entry to the space with a plan for several models.
The company will be taking on the effort of launching a line of electric vehicles in the Indian and global automobile market. The full details on the move were not discussed, and it is unclear if the upcoming electric motorcycles will be launched under the Royal Enfield brand or another brand.
Royal Enfield is a long established name brand in motorcycles, with classic bikes in the 250cc-750cc segment. Over the last financial year, the market leader in the 250cc-750cc segment sold 6,09,403 motorcycles. During Eicher Motors’ recent Annual Report for 2020-21, the company’s Managing Director Siddhartha Lal remarked that EV segment growth and momentum gains with positive policy action.
“With an eye on the future, we are strategically working on developing our future EV products, while we continue to work on our internal combustion engine offerings,” he added.
Siddhartha Lal – Managing Director, Eicher Motors
Other than the Royal Enfield brand, Eicher Motors also has a presence in the commercial vehicle space through VE Commercial Vehicles, which is a JV with Volvo group. Eicher Motors is likely to present their classic Royal Enfield looks, with the latest technology in electric vehicles, and bring to market a premium electric motorcycle line of models.
As Siddhartha Lal, the company’s managing director hinted:
“We are leveraging all that with our keen understanding of consumers to develop a complete range of premium electric vehicles and services for global markets, in our inimitable style of modern classic motorcycles,”
Siddhartha Lal – Managing Director, Eicher Motors
The classical design of the Royal Enfield brand has lasted throughout the years and is to date a bike that riders love for its style and modern technology. The brand has a following, both for brand new models, as well for classical older models from Royal Enfield.
“Our future commitment will be aligned with the global call for action against climate change and support the sector transition to a low carbon economy. Our development and CSR programs will be linked to ESG action,”
Siddhartha Lal – Managing Director, Eicher Motors
The decision to work on electric vehicles come at a time when most of the major automobile manufacturers are a step or more into the space with electric vehicles, while other completely new manufacturers try to get their share with innovative and competitive models.
The tailwinds from India’s legislation in the past year, included the FAME II subsidies (see below), making electric mobility more appealing and cost effective, further pushing the demand for e-bikes. With news from Ola electric and 100 thousand pre-orders for their electric scooter, Revolt motors that sold out on two sale events within a few hours, and more.
FAME II Regulation in India:
“2019 Faster Adoption and Manufacturing of Hybrid and Electric vehicles” (FAME-II) government subsidy, brought in new regulation and rules offering 50% more incentives on two-wheeler EVs. For electric 2-wheelers: Rs 15,000 per kWh of battery capacity, up to 40% of the vehicle cost exempt from tax.
The above incentives are only the government backed ones, as the local states further subsidize tax exempts.
Some local states incentivize with a state subsidy for as much as Rs 5000 and as high up as Rs 10,000 in Meghalaya, while in other states, road tax and registration fee exemption are offered. In the state of Gujarat an announcement for further incentives plan to increase the subsidy to Rs 20,000, and invest in infrastructures to support electric vehicle growth in the state.