Stay up to date with free updates
Simply register for Electric vehicles myFT Digest – delivered straight to your inbox.
Iconic motorcycle brand Royal Enfield is in the “advanced” stage of developing its first electric bike, set to launch next year, as global manufacturers increase investments to penetrate the growing high-performance electric bike market.
Royal Enfield was founded in 1901 in the English Midlands and later moved to India. The company describes itself as the oldest motorcycle brand in the world and has expanded worldwide in recent years – from the USA to Thailand – and achieved cult status with its retro motorcycles.
Royal Enfield CEO B. Govindarajan told the Financial Times that the falling cost of electric vehicles would enable the company to launch its first model in the next financial year, which begins April 2025.
“We’re going to focus on a great looking, very differentiated electric vehicle,” he said, adding that “while no one is making money in the electric world right now… the cost of an electric vehicle is changing rapidly.”
“In a year, when we launch the product, we will be competitive,” said Govindarajan.
Growth in electric vehicle sales has slowed globally as manufacturers struggle with range and high costs, while developing high-quality electric motorcycles is proving particularly difficult.
Compared to four-wheeled vehicles, motorcycles have limited space for batteries, so batteries need to be charged or replaced more frequently. In addition, profit margins are lower than on motorcycles with internal combustion engines.
Govindarajan said Royal Enfield is likely to opt for a “fixed battery with fast charging capability” rather than battery swapping. Anuj Dua, head of Royal Enfield’s Asia-Pacific business, said the electric bike is in the “advanced stage of development”.
In Japan, Yamaha Motor has set an ambitious goal of converting 90 percent of its motorcycles to electric bikes by 2050. However, the company had to postpone its previous goal of selling 10 electric models by the end of this year until mid-2025. Honda plans to invest 500 billion yen ($3 billion) over the next decade to be able to sell 4 million electric bikes annually by 2030.
US motorcycle maker Harley-Davidson secured $89 million in federal funding this month to expand production of its electric motorcycles in Pennsylvania.
In 2022, Royal Enfield invested in Spanish electric motorcycle manufacturer Stark Future. At the Milan motorcycle show last year, the company then unveiled an electric prototype of its Himalayan motorcycle with a 450 cc engine.
Analysts said producing commercially viable, high-performance electric motorcycles remains a challenge.
“An electric vehicle has to deliver that power, that power and that torque,” says Varun Baxi, an automotive analyst at Mumbai-based stockbroker Nirmal Bang. “The technology needs to evolve.”
Royal Enfield has experienced rapid growth in India, the world’s largest motorcycle market by sales volume, and dominates the market for “mid-size” models popular with affluent Indians.
These are larger than the cheap scooters ubiquitous in India, but smaller than the prestige motorcycles from brands like Harley-Davidson or Triumph. The models typically cost between 150,000 rupees ($1,800) and 400,000 rupees apiece.
However, the company lost market share as more domestic and international brands launched mid-range models in India, making the company an export expansion target.
The transition to electric vehicles in India has so far been led by scooters, with companies such as SoftBank-backed Ola Electric and Bajaj developing models costing around Rs 100,000.
Ola celebrated a successful IPO on Friday in India’s biggest IPO so far this year.
The Indian government has launched subsidy programs to accelerate the transition to electric vehicles and encourage global manufacturers like Tesla to set up factories in the country, but so far the results have been mixed. Eicher, the parent company of Royal Enfield, has applied for subsidies under India’s production-linked electric vehicle incentive program.
Govindarajan said that while the adoption of electric motorcycles will “take some time,” it is happening faster than he initially expected. “India as a country is very committed to adopting the technology,” he said.
