Royal Enfield, the iconic motorcycle brand in India, was struggling to survive in the market since the late 1990s owing to cut-throat competition. In 2000, Siddhartha Lal took charge of the company as the CEO and saved it from near shutdown.
The revival story of iconic motorcycle brand Royal Enfield from a near shut down to emerging as one of the highest selling two-wheelers in just two decades is quite remarkable and inspiring for budding entrepreneurs. While the company was almost bankrupt in 1994, today it is one of the largest profitable automobile companies in India. The credit of this success goes to Siddhartha Lal, who was just 26 years old when he took charge of the company.
He turned around a dying business with sheer brilliance and determination. Within a decade Royal Enfield became one of the most profitable two-wheeler brands contributing 80% of profits of its parent Eicher Motors.
Royal Enfield made a strong comeback under the visionary leadership of Siddhartha Lal, who utilised a consumer-centric approach. Its sales went up from a mere 25,000 motorcycles sold in 2005 to 50,000 units by the year 2010. Its brand developed from just being a motorbike to becoming a mark of an unbreakable brotherhood and love for its loyal customers.
In FY 2014, two decades after Siddhartha Lal took charge of Royal Enfield, Eicher Motors reported revenues of about Rs 8,738 crore and a net profit of Rs 702 crore.
Currently, Royal Enfield is the largest revenue earner for Eicher Motors. The total sales of Royal Enfield stood at 78,580 in September 2023, as per the company’s monthly update.
Siddhartha Lal’s role in Royal Enfield’s Resurrection
It was a strenuous task for Siddhartha Lal to take charge of the Royal Enfield as its CEO in 2000 when the company was struggling to survive in an overly competitive market full of sleek and fuel efficient bikes. However, he had an unbending passion for motorcycles and rode Enfield bikes, thereby experiencing them first hand. Thereafter, he not only made product changes but also focused on changing people’s perception of Royal Enfield. He embarked on a journey to fight the notion that Royal Enfield was just a touring bike. He became the brand’s ambassador, breathing life into the sinking business of Royal Enfield and urging all to “Be the Change.”
Siddartha Lal took a number of steps to revive Royal Enfield and to create a new enthusiasm among bike lovers for the brand.
Understanding the Buyer’s Needs: Siddhartha’s strategy involved going up the mountain to point out the hidden shortcomings in the Royal Enfield bikes, particularly the high cost of maintaining the motorcycles due to poor manufacturing.
Behavioural Design: Siddhartha planned to change Royal Enfield’s image so that it became more of a pragmatic everyday ride instead of being seen as a tourist’s bike.
Capturing Emotions: Under his leadership the company built a strong community around the brand. This helped to create a loyal customer base for the iconic motorcycle brand.
Rebranding the Heritage: Lal made it a mantra that innovations can be experienced without overlooking the fundamentals inherent in the brand. On the other hand, new models, such as “The Thunderbird” and “Electra X” were equipped with the unique features of the Royal Enfield engine, which gave a special identity to its customers.
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