Just hope no one else ends in this position. Copied from ADVrider.
"Whelp, finally got the official word today. According to Royal Enfield USA, I apparently can't sufficiently prove that I put in the correct amount of oil in the engine after my 500km service, and because there is no sign of consumption or oil leaks, they do not consider the blown engine to be a warrantable defect. They are willing to offer a "goodwill" of covering the labor to replace the engine, but that means I will still be looking at $3,500 for a new engine, about half of what I paid for this bike out the door.
I'm pretty frustrated with this as I have receipts of what I bought, and I'm sorry but it's not hard to pour in almost 2 liters of oil into an engine, and this decision and lack of support has really soured me on the company of royal enfield. I get that they have to protect their bottom line, but to deny a warranty because I can't prove that I "properly" filed the engine with almost 2 liters of the 3 I bought is absolutely bullshit.
Sorry for the rant. I said I'd update you all when I had more to update, I really wish it was better news."
Here's my takeaway on this. A large and extensive network of dealers is the only way a manufacturer can get its product out into the hands of people wanting to buy them, but those dealers do not make sufficient profits to survive from just selling bikes. In order for them to survive, they need to sell parts and, more importantly, service to the machines, as that's where the real money lies.
So how does the manufacturer help the dealers to keep afloat, thus insuring they can still sell more of what the manufacturer wants to move? Well, they send out a not so subtle message, as we see here, to all owners that if you value your warranty, you will bring your bike back to the dealer to maintain it, at least for 3 years, in RE's case.
I'm sure they see this as a win-win idea from their perspective, because they know damn well that the m/c community forums will be ablaze with this story, spreading it far and wide, as we see has happened here from forum to forum and it most certainly WILL discourage many an owner to heed the warning and at least carry out their servicing for 3 years at a dealership.
RE is trying to get themselves established as a new player worldwide now, not just in India anymore and they won't be able to do that without an extensive dealer network in major countries of the world. Certainly this action is a bold stand on their part, but it does serve their long term goal well.
The only recourse an owner may have is if their country has passed "right to repair" laws, that make a warranty binding on the company involved despite the fact that an owner has done the work themselves, as long as that owner can prove, with receipts for parts and a documented service record, what they did.
If such a law is in place, and the manufacturer balks at a claim, then the only recourse would be the courts, but that would have to be weighed against the costs of a lawyer, as opposed to the costs of the repair too, for both sides in the dispute.