How to Start Royal Enfield Franchise in India – Complete Guide

A trend many people follow when they want to start their own business is a franchise. One of the most well-known motorcycle brands in India is probably Royal Enfield. This brand has an interesting design that stands out from other bikes because it was developed specifically to endure rough terrain, increasing its appeal to enthusiasts over time. Thus, if you are interested in such an opportunity of running a Royal Enfield franchise all you need to do is read this comprehensive guide from our franchise experts on how much it will cost you, who the competitors you should avoid in that location among others.

Why Choose a Royal Enfield Franchise?

Royal Enfield started its operation in Redditch, Worcestershire in England in 1893. The first Enfield cycle was built in 1901.  The company then onwards has made significant strides in the global market.

From North America to Europe in the West and Japan to Australia in the East today, Royal Enfield has a pride of place across the globe. This brand at present today is truly a global brand dedicated to the cause of adventure and leisure motorcycling around the world with relevant products and services.

Read: Top Automobile Companies in India

In 1955, Enfield Cycle Company partnered with Madras Motors in India and formed Royal Enfield of India. They started assembling the 350cc Enfield Bullet motorcycle in Madras. Enfield has a set up of over 200 dealers covering most major cities and towns in India. In the year 1994, Eicher Group acquired Royal Enfield. Presently, the company is headquartered in Chennai.

The company also has 100 plus authorized Service Centres. If you are looking for a franchise in the retail automobile industry with class and heritage, Royal Enfield is surely a wise choice.

Royal Enfield Franchise Cost in India

The initial investment required to start a Royal Enfield franchise can range from ₹1 Crore lakhs to ₹2 Crore, depending on the location and size of the dealership. This includes costs for infrastructure, interiors, inventory, and initial marketing.

• Franchise Fee: ₹5 to ₹10 lakhs
• Initial Setup Cost: ₹50 lakhs to ₹1 crore (includes infrastructure, interiors, and inventory)
• Working Capital: ₹10 to ₹20 lakhs (for initial operations and staff salaries)
• Marketing and Promotion: ₹5 to ₹10 lakhs (initial promotional activities)

Area Requirements for a Royal Enfield Dealership

The minimum area required to set up a Royal Enfield dealership is typically between 3,000 to 4,000 square feet. This space should accommodate a showroom, service area, and parking space. Additionally, the location should be easily accessible, ideally in a high-visibility area.

• Showroom Area: 1,500 to 2,000 sq. ft.
• Service Area: 1,000 to 1,500 sq. ft.
• Parking Area: 500 to 1,000 sq. ft.
• Total Area: 3,000 to 4,000 sq. ft.

Benefits of Owning a Royal Enfield Franchise

• Brand Recognition: Royal Enfield is a well-established brand with a loyal customer base.
• Marketing Support: As a franchisee, you benefit from the brand’s nationwide marketing and advertising campaigns.
• Training and Support: Royal Enfield provides comprehensive training and ongoing support to its franchisees.
• High Demand: The growing popularity of motorcycles, especially in the premium segment, ensures a steady demand.
• Community Engagement: Royal Enfield has a strong community of riders, which can be leveraged for events and promotional activities.

Profit Margin for a Royal Enfield Dealership

The profit margin for the Royal Enfield dealership might differ according to location, sales volume and operational efficiency. Typically, franchises expect profit margins of 10% to 15% in motorcycle sales along with higher margins on accessories and servicing. This brand is very popular as well as it has loyal customers thus; achieving a steady sales volume is realistic making it a good business.
Read: Top Automobile Franchise in India

8 Steps to Start a Royal Enfield Franchise

1. Conduct Market Research

Having an idea about the local market is very important before involving oneself in a franchise process. You are supposed to look at how many people want Royal Enfield motorcycles where you stay, who else is selling bikes like that around and what kind of person buys such a motorcycle. By doing so, you will be able to know if starting a Royal Enfield franchise will suit you.

2. Talk to Royal Enfield about Opening the Franchise

To express your interest in opening a Royal Enfield franchise, it is advisable to directly contact the company. You can do this through their official website or by reaching out to their franchise team via email or phone.

When contacting them, be prepared to provide details about your background, business experience, and the location where you plan to open the franchise.

3. Understand the Requirements

Royal Enfield has specific criteria for potential franchisees. Learn more about cost requirements, area required, infrastructure requirements, manpower needed and support from the franchisor.

4. Prepare Your Business Plan

A solid business plan is essential for securing approval from Royal Enfield and for your clarity. Your business plan should include:

• Market Analysis
• Investment Details
• Revenue Projections
• Marketing Strategy
• Operational Plan

5. Legal and Regulatory Compliance

Before setting up your franchise, it is strongly advised to comply with all local regulations and obtain the necessary licenses. This includes:

• Business Registration
• GST Registration
• Trade License
• Insurance:

6. Finalize the Franchise Agreement

Once approved by Royal Enfield officials, you will need to sign a franchise agreement. This agreement outlines the terms and conditions of the franchise relationship, including:

• Franchise Fee
• Royalty Fee
• Territory Rights
• Operational Guidelines

Make sure to review the agreement carefully and consult with a legal professional if necessary.

7. Set Up the Dealership

With the agreement in place, you can start setting up your dealership. This includes:

• Renovation and Interior Design as per Specifications
• Inventory Purchase
• Staff Training

8. Launch and Marketing

Once everything is in place, you’re ready to launch your dealership. A grand opening event can help attract initial customers. Use Royal Enfield’s brand power by promoting your dealership through:

• Social Media
• Local Advertising
• Community Engagement

Challenges and How to Overcome Them

• The initial investment would be high: A big amount that needs to be invested from the onset may deter however if you manage to find a prime site then your returns will increase greatly over time.
• It’s competitive: Though Royal Enfield boasts of faithful customers, competition from other premium brands can prove difficult. Nonetheless, by providing exceptional customer service and engaging the community, you can set your dealership apart.
• Operational Costs: A dealership comes with recurring monthly expenditures such as employee pay, supervision of stock, and repairs among others. Thus, it is vital to effectively manage these costs through wise planning including regular staff training sessions.

How to Apply

Visit the official webCsite of the company, royalenfield.com. In the footer, you will find a dealer link. Click on the Become a Dealer link. A page with an application form will open up. This is an international application. You need to select your country and fill up the details as much as possible as instructed. If you are selected, company officials will contact you for further discussions.

Royal Enfield employs a comprehensive and professional process for Dealership allotment. The company selects dealers based on a variety of criteria including a personal meeting with the applicant. It is only post-completion of the evaluation and selection process, that those other formalities are considered.

Royal Enfield does not accept or demand money/deposits from prospective partners before processing the application or candidature of the Dealership.

Read: How to Start Jawa Bike Franchise in India

If you receive any communication offering allotment of Royal Enfield Dealership against payment /transfer of money and/or otherwise, we advise you to seek information/clarifications by writing to [email protected] or by contacting the customer care toll-free number

Contact Details

• Website: royalenfield.com 
• Email: [email protected]
• Phone: Available on the official website.

Also Read: Top Profitable Automobile Business Ideas in India

Royal Enfield at present is truly a global brand dedicated to the cause of adventure and leisure motorcycling around the world with relevant products and services.