Big Changes for Royal Enfield, Dealers

Big changes loom for Royal Enfield and for the dealers that have sold the brand in the U.S. for the past 15 years. Effective Jan. 1, distribution of the 500cc motorcycles that are made in India will handled by a subsidiary of the company, rather than by an independent agent, Minnesota-based Classic Motor Works.

Royal Enfield has set up North American headquarters in Milwaukee and hired several former Harley-Davidson execs to shepherd the company’s growth, which may come with many existing dealers falling by the wayside.

At the Progressive International Motorcycle Show in New York last weekend, Royal Enfield social media and digital marketing manager Bree Poland said the company’s goal is to build a network of 100 dealers nationally, but will launch with about 40 agreements in place.

“We’re looking at the urban market,” Poland said, adding that for now the company will only be selling three models – the Continental GT, Bullet Classic and Bullet Military.

Customized Royal Enfield Continental GT at IMS

Royal Enfield is the world’s oldest continuous manufacturer of motorcycles, dating back to 1901. In 2014, it sold more than 300,000 bikes, topping Harley-Davidson. This year, the company will sell upwards of 480,000 bikes, with 96 percent of them being sold in India.

“We’re looking at existing dealers – (and will) see who wants to continue,” said Poland regarding the assembly of a dealer lineup. However, here in New England, several existing dealers may go away.

While Mark’s Motorsports in Enfield, CT is expected to continue selling the brand, New Haven Powersports, also in CT, won’t. “We don’t feel the numbers work for us,” said Jodi Green of New Haven Powersports, explaining that manufacturer stipulations were just too great – such as a yearly sales goal of 30 bikes for a brand that has limited visibility.

Green’s concerns are being echoed by other dealers.

“I love the bike and I love the brand. It’s tough to commit to something you cannot do,” said Darrell Clark of Cumberland County Scooters & Cycles in Portland, ME. He said his status with Royal Enfield is undetermined as the days tick down to Royal Enfield switching to in-house distribution.

Dan D’Arcy of All Power in Granby, MA is likewise unsigned to continue as a Royal Enfield dealer. He said that while Royal Enfields may sell to young urban professionals in India “that’s not what sells in this area.” He also see the 30-bike goal as being problematic. “I’m not sure what I want to do. I’m not a fan of the Harley mentality when they demand so much of dealers,” D’Arcy said.

The view here is that Royal Enfield should be doing anything and everything to get its bikes before the public, and not make it difficult for a motorcycle dealer – existing or new – to sell the brand.

Royal Enfield may be a monster in India but it’s a niche brand with limited appeal here in the U.S. There are at least a dozen other brands that pop into consumers’ minds before Royal Enfield. The time to be demanding, if that’s ever necessary, is after you’re a successful and not when you’re starting out or engaging in a re-launch.

Photos by Bob Rosen and Bud Wilkinson