Royal Enfield Exits Vietnamese Market
Over the last couple of years, Royal Enfield has showed the world that it is getting serious about International markets as well. Be it participating in motorsport events around the world or joining hands with reputed foreign custom houses, the bikemaker has proven its mettle. While we are expecting RE to strengthen its foothold in other international markets as well, Royal Enfield has decided to pull out of Vietnam after a disappointing four-year run.
More details
Al Naboodah International, the official distributor of the brand, said the decision was made since business results did not meet expectations.
The company mentioned that since Royal Enfield vehicles are imported from India they do not get import tax waivers like other brands such as Honda, Ducati and Kawasaki, which are shipped from Thailand. As their (undisclosed) sales targets were not met, it was speculated that the classic & retro designs of Royal Enfield bikes do not meet the popular trends in motorcycle design in Vietnam, who may be after more sporty & modern styles.
Distributor Al Naboodah International (Vietnam) represents three different brands: Harley-Davidson, Triumph and Royal Enfield, and have the 4th largest market for motorcycles in the world to sell to (behind only China, India and Indonesia).
International popularity
Royal Enfield might have bid adieu to the Vietnamese market but that doesn’t mean that it is any less popular in other International markets. If you didn’t know, the RE Interceptor 650 was awarded the Best Retro Bike of the Year 2020 by MCN, UK. This is the top MCN honour for Royal Enfield for two years in a row, as the Interceptor 650 had won MCN’s Best Naked Motorcycle of the Year in 2019 as well. In addition, the Interceptor 650 has been dominating the mid-segment in the UK for a year and has been the best-selling middle-weight motorcycle in the UK consistently over the past 12-15 months. This is a truly remarkable achievement for an Indian motorcycle brand. This response to the Interceptor 650 has propelled Royal Enfield to become one of the fastest-growing motorcycle brands in the UK.
In India, the Interceptor 650 had swept all awards in 2018-19 and had won the prestigious awards such as- Indian Motorcycle Of The Year 2018. It continues to perform exceedingly and has not only attracted existing Royal Enfield owners but also a lot of first-time buyers.
This article was first published on Motoroids - Royal Enfield Exits Vietnamese Market - Auto News From India.