Royal Enfield 2014 production target 280,000 units: 2013 sales increase 57.03%
Royal Enfield has revised its production target for 2014 upwards to 280,000 units. This entails fresh investment of Rs 600 crores over CY 2014-15 towards capacity expansion and new products. Royal Enfield Motorcycles Q4 2013 sales stood at 55,101 units as compared to 31,968 units in Q4 2012. Sales for 2013 stand at 178,121 units as compared to 113,432 units sold in 2012, equating to 57.03% sales increase.
For 2013, total income from operations growth stands at 62.3% at Rs 1702.5 crores, as compared to Rs 1049.3 crores in 2012. At Rs 278.6 crores, profit after tax for CY 2013 registered 92.5% growth over Rs 144.8 crores in CY 2012. For the quarter, highest ever profit after tax of Rs 74.4 crores was reported. Thsi equates to 117.9% incresae over Q4 2012.
Speaking on Royal Enfield’s performance Siddhartha Lal, Managing Director & CEO, Eicher Motors Limited said, “Royal Enfield has again had a fantastic year and continues to grow from strength to strength. We have registered a year-on-year unit sales growth of 57.03% with record sales of 178,121 units in CY 2013 as compared to 113,432 units in CY 2012. Our operating margin (EBIT %) for Q4 2013 has improved to 18.3% from 9.9% in Q4 2012 as we continue to extract operating leverage from the business.”
“At Royal Enfield, we introduced the Continental GT in November 2013 in India. It is the lightest, fastest, most powerful Royal Enfield in production and possibly the most engaging mid-size motorcycle out there. At the India launch in Goa, a new colour variant – GT Yellow was showcased alongwith the GT Red. The event was attended by over 100 journalists, who have lauded the bike with rave reviews. The India launch combined with the hugely successful global launch of the Continental GT in September 2013 in UK has generated tremendous global response to the bike. A range of Continental GT inspired accessories and apparel was also introduced with the bike. In India, the Continental GT has won several awards including the Indian Motorcycle of the Year (IMOTY) for 2014, Best Motorcycle of the Year upto 1000cc and Best Design of the Year at the NDTV Car & Bike awards. In another big win, CNBC- Overdrive declared Eicher Motors Limited as the Manufacturer of the Year. A truly global product, the Continental GT rolls out of the new state-of-the-art plant at Oragadam, Tamil Nadu which commenced commercial production in April 2013. Given the growing demand of its motorcycles worldwide, we are working towards maximizing the production at Oragadam that will take the eventual production to over 500,000 per year. The next phase of expansion at Oragadam is already underway and expected to be completed by end of CY 2015. We will be making an investment of Rs 600 crores in Royal Enfield towards capacity expansion and development of new global product platforms over CY 2014-15. With this, we have also revised our production target upwards to 280,000 units in 2014. Alongwith global products and infrastructure, Royal Enfield continues to make higher investments into brand and distribution that will be pivotal for us to achieve global leadership in the mid-size motorcycle category. Earlier this month, Royal Enfield launched the first-of-its-kind concept retail store at Select City Walk, Saket, New Delhi. Designed as a bike enthusiast’s living room, this new retail format showcases the brand’s philosophy of “Pure Motorcycling” in every aspect of the Royal Enfield ownership experience”, said Mr Lal.