The worrisome slump in the Indian auto industry continue to prevail even as automakers hope to have some relief during the festive season. Like most other two wheeler manufacturers, retro classic specialist Royal Enfield has been witnessing significant YoY decline for the past several months and sales performance in September was not any different.
Royal Enfield managed to dispatch 54,858 units in the domestic market last month compared to 70,065 units in September 2018. That is a 22% decline.
The brand’s export grew by 191% to 4,642 units but since that is only a fraction of domestic sales, the positive impact on the overall sales performance is very less. Combining domestic and export sales, the brand registered a YoY decline of 17% last month.
When it comes to sales performance this year till date (YTD), the Chennai-based two wheeler brand posted a negative growth of 23% at 3,27,222 units sold in the first nine months. During the same period, export operations grew by an impressive 117% at 23,076 units. The net sales performance clocked a dip of 20% with a tally of 3,50,298 units.
Last month, Royal Enfield introduced Euro-IV version of the Himalayan adventure tourer in APAC markets like New Zealand, Australia and the Philippines. The company is currently in the process of updating its existing domestic portfolio to BS-VI emission norms. This exercise will also include introducing next generation versions of its bread and butter 350 cc Bullet, Classic and Thunderbird.
To be based on a new modular architecture, complete with an all-new powertrain, the next gen Royal Enfield thumpers are already out testing in public. While there is no drastic changes to the styling, we expect the upcoming REs to have marked improvement in quality, performance and ease of ownership. The new product onslaught is expected to begin with the introduction of BS-VI versions of the flagship Interceptor and Continental GT 650.
Royal Enfield has been managing to hold its ground in the medium displacement market despite the competition coming up with a variety of alternatives in all shapes, sizes and body styles. Once the overall industry slowdown is over, we expect the company to continue consolidating its market position in its segment.