Home Bike News Royal Enfield reports 44% profit decrease due to COVID-19

Royal Enfield reports 44% profit decrease due to COVID-19

Eicher, which owns Royal Enfield, collected a revenue of Rs 9,154 crore (-7%) and profit of Rs 1,827 crore (-17%) in FY2020

Eicher Motors Limited (EML), the parent company of Royal Enfield, registered a revenue of Rs 9,154 crore and a profit (after tax) of Rs 1,827 crore in FY2020. Compared to the scenario in FY2019, figures went down by 7 per cent and 17 per cent, respectively. In the last quarter of FY2020, EML’s revenue hit Rs 2,208 crore (-12 per cent) while profit stood at Rs 304 crore (-44.2 per cent). In this period, Royal Enfield sold 697,582 motorcycles. This is lower by 15 per cent in comparison to Q4 FY2019. Meanwhile, the Chennai-based motorcycle manufacturer reported substantial growth of 96 per cent in exports, after shipping ~38,700 units.

Siddhartha Lal, Managing Director of Eicher Motors Limited, stated that Q4 2020 was tough for the entire Indian automotive industry. COVID-19 pandemic, which hit India in the period, created many challenges and confusions across automakers. However, Eicher is focused on finding the best in the worst and continue with its long-term goals.

As India entered its fourth stage of COVID-19 lockdown protocols, automotive facilities in green and orange zones were opened in a safe, sanitised and socially distanced environment. Siddhartha Lal states that the company is witnessing good responses from the market (still less than pre-COVID times) as both Royal Enfield and VECV (Volvo Eicher Commercial Vehicles) have updated almost all its popular products to meet BS6 emission norms. Either brand is planning to launch new products as well.

Royal Enfield Meteor 350
Royal Enfield Meteor 350 (Image: Chithrarth M)

In fact, Royal Enfield has been working on its next-gen ‘UCE 350’ line-up for almost two years. Over the months, we have shared multiple spy shots of upcoming Royal Enfield products (in test mule avatars) including a set of the rumoured ‘Hunter’. On the other hand, the Royal Enfield Meteor 350 would be the first among the next-gen UCE single-cylinder models to hit the market. It is essentially a replacement to the BS4-compliant Royal Enfield Thunderbird.

The new-gen Royal Enfield models might feature a host of modern equipment to stay up-to-date in the segments they play. Bluetooth connectivity, digital instrument cluster and OHC (Overhead Cam) configuration are sure bets.

Vinod K Dasari, CEO of Royal Enfield, shared that the brand was focused on improving its customer experience through a fresh “brand interface”. This includes over 600 new Royal Enfield Studio Stores spread across the country. In early June, 90 per cent of these exclusive outlets were opened (in phases) after the Indian government relaxed its lockdown measures.

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