Royal Enfield posts lower sales both in domestic and export markets
In August 2020, Royal Enfield once again managed to breach the 50,000 unit mark. This is a good sign, considering the several months of slow down due to corona virus and lockdown. Though Aug 2020 sales are in the red, it is largely due to supply constraints. Royal Enfield has stated that they are sitting on a backlog of about 40,000 orders.
In Aug 2020, total sales (domestic + exports) stood at 50,144 units, down 5 percent from 52,904 units sold in August 2019. However, despite YoY de-growth, August sales show a steady growth from 38,065 units in June 2020, to 40,334 units in July 2020 and then on to 50,144 units in August 2020.
In the past month, domestic markets, sales stood at 47,571 units down 2 percent as against 48,752 units in August 2019 while dispatches to global markets were at 2,573 units down 38 percent as against 4,152 units exported in August 2019. Royal Enfield also noted an increase in market share in the two wheeler segment to 3.91 percent in August 2020.
Model wise sales breakup in domestic market
It was only the RE Classic 350 that contributed positively to total domestic sales last month. Sales of the Classic 350 stood at 34,791 units, up 48.47 percent as against 23,433 units sold in August 2019. The Classic 350, the most popular model in the company lineup, and is offered in multiple variants and colour options. Price of this model has just undergone an upward revision by Rs.1,837. This makes the Classic 350 now priced from Rs.1,61,688 to Rs.1,86,319.
The RE Bullet 350 and Electra 350 noted sales of 7,257 units and 4,129 units respectively in the past month, down 38.62 percent and 17.39 percent respectively as against sales in August 2019. RE’s flagship and adventure tourer, the 650 Twins and Himalayan contributed 864 units and 530 units to domestic sales respectively. With the festive season fast approaching, the company is set to launch the new RE Meteor 350 which should boost domestic sales.
RE Exports
Maximum demand was noted for the 650 Twins in global markets. There were a total of 1,409 units of these two models exported last month, down 27.07 percent as against 1,932 units exported in August 2019. De-growth was noted for the Classic 350, Classic 500, Thunderbird 350 and Bullet 500 while there were zero units of the Bullet 350 exported. There were no exports of the Electra 350, Bullet 350 and Thunderbird 500 last month.
| No | Royal Enfield Domestic | Aug-20 | Aug-19 | Diff | % |
|---|---|---|---|---|---|
| 1 | Classic 350 | 34,791 | 23,433 | 11,358 | 48.47 |
| 2 | Bullet 350 | 7,257 | 11,824 | -4,567 | -38.62 |
| 3 | Electra 350 | 4,129 | 4,998 | -869 | -17.39 |
| 4 | 650 Twins | 864 | 2,172 | -1,308 | -60.22 |
| 5 | Himalayan | 530 | 1,653 | -1,123 | -67.94 |
| 6 | TB 350 | 0 | 3,843 | -3,843 | -100.00 |
| 7 | Bullet 500 | 0 | 57 | -57 | -100.00 |
| 8 | Classic 500 | 0 | 702 | -702 | -100.00 |
| 9 | TB 500 | 0 | 70 | -70 | -100.00 |
| – | Total | 47,571 | 48,752 | -1,181 | -2.42 |
| No | Royal Enfield Exports | Aug-20 | Aug-19 | Diff | % |
| 1 | 650 Twins | 1,409 | 1,932 | -523 | -27.07 |
| 2 | Himalayan | 884 | 882 | 2 | 0.23 |
| 3 | Classic 350 | 178 | 527 | -349 | -66.22 |
| 4 | Classic 500 | 98 | 413 | -315 | -76.27 |
| 5 | TB 350 | 2 | 61 | -59 | -96.72 |
| 6 | Bullet 500 | 2 | 329 | -327 | -99.39 |
| 7 | Electra 350 | 0 | 0 | 0 | – |
| 8 | Bullet 350 | 0 | 8 | -8 | -100.00 |
| 9 | TB 500 | 0 | 0 | 0 | – |
| – | Total | 2,573 | 4,152 | -1,579 | -38.03 |
Price Increase
Royal Enfield has increased prices of its entire range in India. This is the second time that the company has increased prices of its BS6 model lineup, the first being in May 2020. Prices of the Royal Enfield Classic 350, Bullet 350, Himalayan, and 650 twins have been increased by Rs 1,800-2,800, depending on the variant.
The most affordable Royal Enfield bike, the Bullet 350, now starts at Rs.1.27 lakhs going up to the RE Interceptor 650 which now ranges from Rs 2.66-2.97 lakhs and Continental GT 650 which now costs between Rs 2.82 – Rs 3.03 lakhs. All prices are ex-sh.
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