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Reasons behind low sales of Royal Enfield Continental GT in India

Reasons behind low sales of Royal Enfield Continental GT in India
Roger Dsouza Roger Dsouza Sunday 20 July 2014, 12:31 PM

The Royal Enfield Continental GT was launched in India amidst a lot of fervour and hype, generating tremendous among automobile tabloids and analysts, who expected it to make a deep impact on the market and giving a new dimension to the name of its manufacturer. Months after its launch, the bike is struggling to pull together sales and is really struggling in the market. Analysts and industry experts have tried to fathom what went wrong with the Royal Enfield Continental GT.

In the first place, the biggest mistake, according to expert, made by the manufacturer was the lack of marketing before the bike was introduced in India. For a distinguished product to be introduced in a market like India, there needs to be a certain level of awareness created among the targeted customers. The lack of advertising cost Royal Enfield dearly and except for the niche customers, there are not many who still know about the bike in India.


Though it is an exceptional bike, the pricing of Royal Enfield Continental GT Cafe Racer was too much for Indian customers, who are extremely sensitive about the price of a vehicle, especially a bike. Asking an Indian biker to spend over INR 2 lakh for a motorcycle, a company really needs to show the goods and be in the mind of the customer to be able to make the bike a success. Due to the price of the bike, its market size got considerably reduced, thereby making it not do that well in the country.

Lastly, identification with the bike is a big issue for Indian customers as there are many who go on the brand and make a pre-conceived notion regarding the product. Royal Enfield is a brand associated with the Bullet bike in India and anything different is not likely to get identified by a customer. Royal Enfield Continental GT Cafe Racer is a top class bike but it does not fit the model of a Bullet like two-wheeler, which put off Indian customers.


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