Royal Enfield’s monthly sales grow by just 1 per cent while YTD sales fall by 14 per cent
Royal Enfield has been battling a difficult market for a while now. With sales slowdown battering the Indian automotive market for months, February 2020 sales look somewhat bright in a grey sky. Royal Enfield reports a domestic sales figure up by 2 per cent, or 61,188 units from 60,066 units. As expected, Royal Enfield will end the current FY in a double-digit sales decline. YTD FY20 sales decline is reported at 16 per cent, down to 6,24,020 units from 7,46,839 units.
But everything is not bleak. On the exports front, Royal Enfield has been building brick by brick. The launch of its 650 twins (now in BS6 format) provided a much needed shot in the arm when it comes to exporting vehicles of a bigger segment. This is something which the Chennai-based manufacturer has not been known for until a few years before. Royal Enfield’s YTD FY20 exports stand at 36,004 units. This figure is up by a strong 95 per cent from 18,428 units.
This bodes well with the British-origin brand’s intention of performing better in the markets, overseas. On the other hand, Royal Enfield exports for the month of February 2020 fell by 8 per cent i.e. down to 2,348 units from 2,564 units. However, total sales for February 2020 is stable at 63,536 units and is up by just 1 per cent from 62,630 units. YTD FY20 sales were reported at 6,60,024 units. This is down by 14 per cent from 7,65,267 units.
Royal Enfield has announced its unaudited consolidated financial results for the quarter ended 31st December 2019. In Q3 FY20, Royal Enfield sold 189,143 motorcycles at a 2 per cent sales decline from 193,164 motorcycles sold in Q3 FY19. The manufacturer is focused on strengthening its distribution network in India and abroad. For the said period, Royal Enfield added seven new large-format stores and 250 new studio format stores in the country.
Overall, the manufacturer has 1,400 retail touchpoints in India. Globally, Royal Enfield added new stores across Thailand, Brazil, Argentina, France and the UK. Its overseas network now spans across 675 stores including 67 exclusive outlets. Network expansion, in combination with new marketing initiatives, has helped the manufacturer triple its sales outside India.
With BS6 emission norms mandated from 1 April 2020, Royal Enfield is having to make a few adjustments to its product lineup. While its 350cc segment bikes are being revised, the 500cc segment isn’t. It’s 650 twins have long proven to be a go-to option. The newer and bigger bikes have created a segment that’s doing well. In the meantime, the Royal Enfield Meteor (Thunderbird successor) is being prepared for launch.