Sales slowdown coupled with BSVI transition has certainly had an effect on Royal Enfield sales.
For January 2020, the manufacturer reports total two wheeler sales at 63,520 units at 13 percent decline from 72,701 units. FY20 YTD sales decline is higher at 15 percent. Sales in period from April 2019 to Jan 2020 is down to 5,96,609 units from 7,02,637 units in period from April 2018 to Jan 2019.
The bulk of Royal Enfield sales comes from its 350cc segment range. In this segment, the company sells Classic 350, Bullet 350, Electra 350 and the Thunderbird 350. January 2020 sales in the 350cc segment is reported at 59,200 units, down 13 percent from 67,915 units. Segment sales are down 19 percent to 5,32,234 units for FY20YTD from 6,55,779 units for the same 10 months in the last FY.
|Less than 350cc||59,200||67,915||-8,715||-12.83|
|More than 350 cc||4,320||4,786||-466||-9.74|
Sales in the above 350cc segment, which includes the 500 cc range of Classic / Bullet / Thunderbird, the Himalayan, and 650 twins. This mid segment range has seen new launches in recent years but continues to sell only a handful each month when compared to total company monthly sales. Last month, sales amounted to 4,320 units, down 10 percent from 4,786 units sold in January 2019.
FY20 YTD above 350cc sales for the manufacturer is reported at 64,375 units, up from 46,858 units for the the comparable period. That’s sales growth of 37 percent. So, while Royal Enfield’s bigger bikes are being sold in smaller numbers, the segment certainly has been growing through the year.
Interestingly, this has helped Royal Enfield benefit in more ways than one. The brand’s bigger bikes sales grew for export markets and all through the current FY, exports have more than doubles in volume. Exports in January 2020 is reported at 2,228 units, up 22 percent from 1,829 units. FY20 YTD exports are up 113 percent at 33,776 units, up from 15,864 units.
The manufacturer has already announced that it’s the end of road for the Classic 500. A limited run special edition Tribute Black is being sold, and these models two will uphold the handprinted gold pinstripe tradition. Those who are allowed one of the limited edition bikes will find that the vehicle displays an ‘End of Build’ serial number. The 500cc offering remains a BSIV compliant engine and as such registration will not be possible from April 1, 2020. 500cc sales have dwindled in recent times and maybe nostalgia can help boost sales of the limited edition.