With most two wheeler manufacturers focusing on entry level motorcycles, Royal Enfield is leading the race in 251-500cc segment like no one else
It’s true that Royal Enfield has been facing competition from multiple rival products in recent times. The list includes motorcycles from Honda, Mahindra, TVS, Yamaha, Bajaj, KTM, Benelli, Jawa and Kawasaki. However, despite the best efforts of rivals, Royal Enfield continues to enjoy a monopoly of sorts in the 251cc to 500cc motorcycle segment.
95% market share in April-November 2020
Royal Enfield’s dominance is clearly evident when we look at sales data for the period between April and November 2020. In the 251cc to 500cc segment, the company sold a total of 3,11,388 units during the eight months. About 70% of the sales, is thanks to just one motorcycle – Classic 350.
In comparison, sales of rivals are just a fraction. In terms of sales, the nearest rival is Bajaj + KTM, with collective sales of 9,870 units. This is just a little above 3% of Royal Enfield sales. Bajaj had infamously tried to defame Royal Enfield by a series of ads called Haathi Mat Paalo. That seems to have not helped them at all.
Next is Honda with sales of 5,357 units. This is 1.72% of Royal Enfield sales. TVS + BMW are even farther away with 2,189 units sold during April-November 2020. This is less than 1% of Royal Enfield sales. Next is Mahindra with sales of 179 units. Yamaha and Kawasaki sales during the period were zero units.
Overall, a total of 3,28,983 units were sold in 251cc to 500cc motorcycle segment between April and November 2020. At 3,11,388 units, Royal Enfield sales are close to 95% of the total. It is to be noted that Jawa and Benelli sales are not available. Jawa monthly retail sales have been in the region of 2,500 to 3,000 units for the past few months.
Difficult to unseat Royal Enfield
While we have heard the David and Goliath story, Royal Enfield is unlikely to lose its commanding position anytime soon. There are several reasons why Royal Enfield is so difficult to beat. One of them is the fact that Royal Enfield motorcycles are associated with pride, power and prestige. They are a lifestyle / fashion statement, with a cult like following. On the streets, Royal Enfield motorcycles easily dominate other bikes with their aggressive profile, size and the signature exhaust note.
Another reason is that Royal Enfield has a broad range of products to suit individual needs and preferences. Moreover, every single product has plenty of options in terms of colour choices and accessories. To make things even easier and beneficial for customers, the company recently launched the ‘Make it Yours‘ platform. This allows users to customize their motorcycle exactly as per their requirements.
Even when it commands 95% market share, Royal Enfield is unlikely to take things lightly. The company is working proactively to not just maintain its lead, but to extend it even further. For that, Royal Enfield has planned several new product launches in the coming years.
The first of its next-gen products, Meteor 350, has already emerged a bestseller in the segment. Several more are in the works including a 350cc version of the popular Interceptor 650. Royal Enfield will also be launching the next-get models of its current bestsellers such as Classic 350, Electra and Bullet.