With most manufacturers able to post MoM sales growth, overall 2020 August sales looks better than the month prior
Road Enfield reports domestic sales decline of 2 percent, down to 47,571 units from 48,752 units sold in August 2019. Exports too fell. Down by 38 percent, exports contracted to 2,573 units from 4,152 units. Total sales decline is reported at 5 percent, down at 50,144 units from 52,904 units.
In July 2020, Royal Enfield reported total sales at 40,334 units. While exports have not gained in a MoM comparison, domestic sales improved 25.43 percent from 37,925 units sold in July 2020.
It’s easy to see how much of a sigh of relief August 2020 sales brings considering FY21 YTD sales decline stands at 48 percent. Domestic sales for the last 5 months has contracted to 1,40,435 units, down from 2,72,364 units. Exports for the period have shrunk 60 percent, down at 7,312 units from 18,434 units.
Total sales decline is reported at 49 percent, down to 1,47,747 units from 2,90,798 units in the same five months last year. What’s lost in Q1 FT21 isn’t likely to be recovered by year end, but a gradual recovery would bode well.
Since business restarted in May 2020 in passed manner, monthly performance continues to improve. While recovery for FY21 is a difficult ask, there’s no doubt that Q2 reports will look remarkably better than Q1 reports. A boost is expected on account of the ongoing festive season, an identified period during which time buying activity increases.
As the month same to a close Royal Enfield announced single day sales across Kerala at a 1,000 units owing to Onam. With festivity to continue over the next couple of weeks, sales through September 2020 is a space to watch out for. This is all the more exciting for RE owing to the launch of Meteor 350.
Meteor 350 launch
Royal Enfield is geared up for multiple launches, the first of which happens to be Meteor 350. BS6 mandate and transition meant the Thunderbird 350cc variants are no longer sold. Royal Enfield Meteor, a 350cc segment entrant is queued for launch in September 2020. Available in three variants – Fireball, Stellar and Supernova, feature variances define each. Considering Royal Enfield created the 350cc segment, and has over the years refined, and defined it, a new launch is always exciting. Looking at current sales trends, a new offering will help further strengthen recovery.
Currently, Royal Enfield is testing other new bikes too. This includes one that may be known as Hunter or Sherpa, a replacement for Classic 350cc, and a 650cc cruiser. The brand is keen not just in reclaiming lost market share but also improving its exports as it continues to establish its reputation in the mid-segment market.