Royal Enfield has posted sales report for January 2019. In the past month, sales in domestic and export markets stood at 72,701 units, a decline in sales of 7 percent over the same month in the previous year.
In domestic markets as well, the company saw lower sales to the extent of 70,872 units sold in January 2019 as compared to 76,205 units sold in January 2018. International sales / exports went up to 1,829 units in January 2019 as compared to 1,673 motorcycles sold in January 2018. This was primarily due to the introduction of its 650 Twins – Continental GT 650 and Interceptor INT 650.
Taking the period April 2018 to January 2019, Royal Enfield sales increased 5 percent from 6,71,328 motorcycles in the period a year ago, to 7,02,637 motorcycles in the same period in 2018-19. Domestic sales during this April 2018 to January 2019 period also increased 5 percent from 6,55,667 to 6,86,773 while exports remained flat at 1 percent from 15,661 to 15,864 units.
Royal Enfield 650 Twins – Continental GT 650 and Interceptor INT 650 are expected to see a a further increase in exports. The bikes have been launched in markets across US and Europe and also in South East Asian markets with sales expected to gain momentum from March 2019.
In other news, Royal Enfield has signed an agreement with the Government of Tamil Nadu. Investment to the tune of Rs.1,500 crores will be made over the next five years towards expansion of capacities at the company’s three facilities at Thiruvottiyur, Oragadam and Vallam Vadagal from where production of motorcycles both for domestic market and exports are going to take place. A new Technology Center at Old Mahabalipuram Road in Chennai is also in the process of being set up.
The company has announced a 2 percent price hike for the Royal Enfield 350cc and 500cc bikes, which is roughly around Rs.1,500-2,000 over previous prices. This price hike will be on the Royal Enfield Classic 350, Classic 500, Bullet 350, Bullet 500, Thunderbird 350 and Thunderbird 500, but will not be applicable to the 650 Twins. Increase in manufacturing cost were the reasons given for this price hike. Next in line from Royal Enfield for launch is Bullet Trials.