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Royal Enfield Faces Major Fine for Defective Motorcycle
Royal Enfield and its authorized dealer, Bharat Automotives, have been ordered by a consumer commission in Coimbatore to pay ₹95.1 lakh in compensation. The ruling follows a complaint about a Continental GT 650 motorcycle that experienced continuous mechanical and electrical problems since its purchase in May 2022. The District Consumer Disputes Redressal Commission found a significant lapse in service due to the repeated unresolved faults.
Motorcycle Suffers From Persistent Technical Failures
The owner of the Continental GT 650 reported numerous issues, including the instrument cluster failing six times. Additional problems affected the keyset, suspension, throttle body, and exhaust. The motorcycle was in authorized service centers for a total of over 294 days across different cities, causing significant distress and financial burden to the owner.
Dealer Accused of Overcharging and Errors
In addition to the bike's mechanical defects, the dealership, Bharat Automotives, is accused of charging higher insurance premiums than initially quoted. An error was also made on the motorcycle's registration certificate, with the owner's name listed incorrectly, further compounding the owner's dissatisfaction.
Commission Orders Substantial Compensation
The commission determined that the ongoing defects and repeated failed repair attempts amounted to a clear deficiency in service by both Royal Enfield and Bharat Automotives. Consequently, they are jointly liable to pay ₹95 lakh for mental distress, hardship, and related expenses. An additional ₹910,000 has been awarded for litigation costs. If payment is not made within two months, interest at 12% will be applied.
Quality Concerns and Previous Recalls
This case highlights ongoing concerns about Royal Enfield's product quality and after-sales support. Despite its strong brand and market position, the company has previously issued recalls for issues like ignition coil defects affecting models such as the Meteor 350, Classic, and Bullet. Another recall addressed defective reflectors on vehicles produced between November 2022 and March 2023. While newer models like the Interceptor 650 and Continental GT 650 are generally regarded as having better build quality, common consumer complaints still include engine vibrations, oil leaks, and rusting. Competitors like Honda, TVS, and Jawa offer alternative retro-styled motorcycles with various strengths. Eicher Motors, Royal Enfield's parent company, faces expectations for future growth, making the resolution of such quality issues crucial for maintaining brand reputation and market standing.