Indian motorcycle maker Royal Enfield suspends business in Vietnam

Al Naboodah International, the official distributor of the brand, said the decision was made since business results did not meet expectations.

It said 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.

Another reason for the poor sales was that the retro and classic designs of Royal Enfield motorcycles were not popular in Vietnam, it said.

It did not disclose sales figures.

But it assured that warranty and maintenance services would continue uninterrupted.

Al Naboodah International also represents also two other brands, Triumph and Harley Davidson, in Vietnam.

Royal Enfield said it has no plans to exit the market, and is looking to appoint a new distributor for Vietnam.

The company was originally the U.K.’s Enfield Cycle Company Limited established in 1901.

In 1955, it and its Indian partner, Madras Motors, founded Enfield of India with a factory in Chennai that produced the first batch of 800 Royal Enfield Bullet 350 cc engines for the Indian government.

When Royal Enfield ceased operations in the U.K. in 1967, Enfield of India continued to operate and was acquired by tractor and commercial vehicle manufacturer Eicher Group Limited (India) in 1994.

The company later changed the name to Royal Enfield Motors Limited.