Royal Enfield's failure in the 1990s-
The Japanese competition arrived in India during 1980s and there was lack of modernization of Enfield India. There were joint ventures formed by the Japanese companies like Honda, Yamaha, Suzuki and Kawasaki in India that captured the market with smaller engine capacity, fuel-efficient, superior quality motorcycles and scooter. So, its market share started to drop.
Enfield India entered into a strategic alliance with the Eicher Group in 1990, and later merged with it in 1994. During this merger, the name Enfield India changed to Royal Enfield (RE).
However, in early 2000s, the board of Eicher Motors had severe business challenges that called for its restructuring and divestiture. On one hand, several long-existing businesses of…show more content… To tackle the first, shop floor processes were fine-tuned, while suppliers were exhorted to improve quality levels. Royal Enfield also embarked on a large scale internal exercise to tone up performance.
Slowly, there were changes in its performance in market. The engine related problems and oil leakages in Royal Enfield products almost disappeared. By 2008, service centers were reporting lower workloads. There was also significant fall in the warranty claims. Royal Enfield also began conducting marquee rides to promote leisure biking. To improve sales experience new company-owned showrooms were launched and dealerships expanded.
By 2009 the company launched newer products in domestic and international markets and they were well-received. The capacity utilization went up to 100 per cent, yet there is a six-month waiting period for deliveries, suggesting, immediate need to increase production capacity.
Re-engineered, but without losing its traditional features, the Royal Enfield bikes today have again captured the imagination of the motorcycle