Royal Enfield domestic sales for June 2019 is reported at 55,082 units. Royal Enfield June 2019 sales decline stands at 24 percent, down from 72,588 units sold in June 2018. Global sales for the month are 3,257 units. Int sales growth is at 72 percent, up from 1,889 units sold in June 2018. Total sales for the months stand at 58,339 units. This equates to total sales decline of 22 percent, down from 74,477 units sold in June 2018.
In addition to June 2019 sales slowdown, Royal Enfield has reports sales decline for Q1 FY2019-20. Total sales for the quarter are down at 1,83,589 units. Sales decline for April-June 2019 stands at 19 percent, down from 2,25,361 units sold in Q1 FY2018-19. Domestic sales for the period is down 21 percent. Sales at 1,74,430 units, is down from 2,19,725 units. Global sales are up 63 percent for the same 3 months. Int sales is down to 9,159 units, up from 5,636 units sold in April-June 2018.
For 2019-20, Royal Enfield plans production of 950,000 motorcycles. For the quarter ended March 31, 2019, Royal Enfield sold 822,724 at marginal growth, up from 820,121 motorcycles sold in the year ended Mach 31, 2018.
Royal Enfield has announced plans to introduce bikes in the bigger cc segment. And while that development is much awaited, Royal Enfield is studying the smaller segment market. Currently Royal Enfield 350cc bikes are the company’s smallest segment offering. The company is now studying a 250cc segment offering. This could help the brand reach a wider audience.
A number of reasons have contributed to the ongoing sales slowdown. Continuous decline in domestic sales is fuelled by economic uncertainty, irregular monsoons, high interest rates, tight liquidity, increased insurance costs, and introduction of ABS. The Indian auto industry is currently working towards mandated BSVI compliancy by April 1, 2020. As such, price stands increased across the product range.
In recent times, the Indian two-wheeler market has seen a range of 250-300cc bikes launched. Not having a product in the segment results in RE losing out on buyers. Royal Enfield has a strong grasp in the 350-500cc segment. And most recently has introduced its biggest bikes as of now, the 650 twins.
With sales being a tough ask in the current market situation, introducing a new segment could bode well for Royal Enfield. For Jan-June 2019, Royal Enfield has posted sales decline for 6 consecutive months.