Royal Enfield will launch its new model Continental GT in the UK next month as it looks to tap global customers in the mid-sized motorcycle segment.
"The mid sized bikes has been totally neglected but for us we figured out, it is mid size motorcycle market, so we are going to be a premium mid sized motorcycle," Lal said.
Below is the verbatim transcript of his interview with Shereen Bhan
Q: You have had a very difficult decade, what kept you going?
A: It was difficult but it was like the most fun, it was nearly like a startup environment as close as let us say someone with an inheritors dilemma gets to a startup environment.
Q: Very often we actually see businesses starting to chase volumes or at least aspire to start chasing volumes. What you sell in a year Hero Honda or now Hero MotoCorp will probably now sell in a month so the temptation to not go down the volume route how did you stay away or resist that temptation?
A: It was really simple because what I figured is that if we can't do what we are doing well we will never be able to do what Honda does well. So, what we were doing was bigger motorcycles and more brand evocative long distance motorcycles but weren't doing a good job of that. So, if we can't do a good job of that then there is no chance we can compete against.
Q: Things have turned around now, is it an option now?
A: Absolutely not, we are so happy where we are and we are so delighted where we are that we would never do that.
Q: Is a global alliance part of the agenda as far as Royal Enfield is concerned and I ask you this because we have seen a lot of other Indian manufacturers go that route?
A: It was something we were interested in three or four years ago. So, we were talking with couple of people, we were figuring it out but now we don't need them. So, I think we are okay on our own.
Q: How do you then take on the Ducati, Triumph, etc as you go into the international market?
A: It is a business model, the mid sized motorcycle market is totally underserved globally. So, all the guys we mentioned the Europeans, the Americans they are into big bikes, they are into expensive bikes, USD 15,000, USD 20,000 and above that is the kind of biking they do or there are the commuter motorcycles which are really small served. The mid sized bikes has been totally neglected but for us we figured out, it is mid size motorcycle market so we are going to be a premium mid sized motorcycle.
Q: A very quick question on the joint venture with Volvo. How are you doing things differently to ensure that both partners are happy with the relationship and Eicher is now actually part of the Volvo brands that they are marketing internationally as well?
A: What keeps us together and what keeps us going well is that we both know that if both of us were to do this alone we would probably mess up. So, we need each other. It is partnership of equals, it is an equal partnership. Volvo values that we have a very local Indian business model so it is the business model which is so valuable, which we are able to do now I believe really well which is a joint business model but we are getting technology and we are gaining capability and all of that and we are totally reinventing trucking from ground up in India.
Q: If you could drive one bike which is not a Royal Enfield what would it be?
A: I am not into very sporty bikes normally but I do enjoy riding a Ducati once in a while. I have ridden the Victory Motorcycles and my partner Polaris makes Victory Motorcycles and they are just going to start Indian motorcycles and they make the best Cruisers in the world beyond a doubt. So, I love riding all sorts of bikes.
Q: My question is related to the word you used 'inheritor'. Two parts to the question related to the same topic, one is are there some disadvantages of being a inheritor part of the family and second question is let us say if you are not from Eicher family and you are a regular student of economy at St Stephen's that you mentioned would you have taken a different trip?
A: Certainly a lot of advantages to being an inheritor and I am sure there are a few disadvantages but I don't worry about those really. You have got what got and you have to make the best out of it.
Would I have done something different? For sure, I don't think I would have been sitting here doing this because you don't get into a business like making trucks or motorcycles just like that.
Q: What would you have done, what would you like to do?
A: I have thought about a lot but I have absolutely no idea.
Q: A lot of Indian auto companies have made some bold audacious moves that are now beginning to pay off for them. Tata Motors bought out Jaguar Land Rover (JLR), JLR keeping Tata Motors alive today would you look at perhaps an acquisition?
A: Our brand is so special, at least I feel so and we have created in such a unique manner I don't even want to sort of dilute my focus, my energy on something else. So, if there is something outrageously wonderful that comes on the plate maybe but most likely not.
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