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Monday, August 25, 2008

Royal Enfield price hike seems like a bargain

CHENNAI -- Citing the steep increase in the raw material costs, two-wheeler manufacturer Royal Enfield on Monday said that it has decided to increase the price of some of its existing models -- in India. The increase is noteworthy but the resulting price would still strike most Americans as a tremendous bargain.

The Royal Enfield Bullet costs far less in India than in export markets. The difference reflects the difficulty and expense of certifying motorcycles to meet foreign standards. These added costs must then be borne by the very small numbers (relatively) being exported to each country.

The company's three popular models in India -- Standard 350, Machismo 350 and Machismo 500 would cost more from Sept. 1, a company release said. The Standard goes from 69,354 rupees to 71,270 rupees.

Converted to dollars, that would be an increase from $1,589.78 to $1,633.70. The price of the Machismo 500, probably closer to the Bullet we get in the U.S., is expected to increase from Rs 99,891 to Rs 102,062. That is from $2,289.77 to $2,339.53.

Classic Motorworks says the "starting" price of a Bullet Classic 500 in the United States is $5,349.

2 comments:

  1. Hi David

    Thanks for your comments on my blog, I have had a quick look at your's and you have loads on Enfield stuff! My blog is more of a diary with the Enfield in it.

    Anyway, work to do, will look at your blog in more depth when I have time!

    ReplyDelete
  2. Thanks for covering this story with such a positive perspective.

    We know that pricing is a sensitive area, and always grimace a little when we have boost the domestic cost of an Enfield to keep up with manufacturing cost increases at the factory, improved standards/certification, and (most significantly) the transportation-related costs of getting the bikes to our shores and through customs.

    We've been absolutely delighted that so many customers continue to find the bike to be a great value even as costs have risen in our market. I hope that Enfield India will have the same good fortune in their market.

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