Royal Enfield reported a 1.92 percent increase in domestic sales but an 11.1 percent dip in exports in the past month
Chennai based Royal Enfield ended September 2020 with total sales of 60,041 units as against 59,500 units sold in September 2019. This includes both domestic and export volumes. However, taking domestic sales and exports individually, while the company noted an increase in domestic sales, exports dipped 11.1 percent.
Classic 350 Maximum Sales
Where domestic sales were concerned, the company’s 350cc segment, comprising the Classic 350, Bullet 350 and Electra 350 commanded the list with total sales of 53,442 units out of total sales of 55,910 units in Sept 20.
While Classic 350 and Electra 350 saw sales increase in Sept 20 over that of Sept 19, Bullet 350 sales dipped 28.36 percent to 8,883 units in the past month, down from 12,399 units sold in Sept 19. The RE Himalayan and 650 Twins were lower down the order with both reporting negative sales.
Exports on the other hand were under pressure in the past month. Dispatches to global markets stood at 4,131 units, down 11.01 percent as against 4,642 units exported in Sept 2019. However, when assessing MoM growth, it was a significant 60.55 percent increase as against 2,573 units exported in Aug 20.
In global markets, it is the RE 650 Twins, Himalayan and Classic 350 that claimed top spots while the Classic 500 and Bullet 500 also added some numbers along with the TB350 Unlike in domestic markets where the Bullet 350 and Electra 350 are much in demand, these two bikes do not find any buyers globally.
Royal Enfield has recently announced local assembly of its motorcycle range in Argentina along with Grupo Simpa, who have been the company’s local distributors since 2018. This will be the first time that Royal Enfield motorcycles will be assembled and produced outside of the company’s Chennai plant in India.
Royal Enfield Sales Analysis
Though the YoY increase is negligible, when comparing sales of Sept 20 with that of Aug 20, there was a significant increase of 17.53 percent. The company had sold 47,571 units in August 20 signalling a revival in customer sentiments following the ill effects of the COVID-19 pandemic and with Unlock 5.0 in place.
|No||Royal Enfield Domestic||Sep-20||Sep-19|
Each bike in the company lineup noted a MoM sales increase which was especially notable in the case of the 650 Twins with a surge of 124.53 percent to 1,190 units in Sept 20 over 530 units sold in August 20. Considering the fact that overall two wheeler sales have revived in Sept 20 over that of August 20 indicates that demand is heating up especially in view of the need for more personal means of travel as against use of public transport to curb the spread of the pandemic.
|No||Royal Enfield Exports||Sep-20||Sep-19|
The Classic 350 remains the company best seller in domestic markets, commanding a market share of 69.45 percent. The bike is now priced between Rs.1,61,688 and Rs. 1,86,319 and is available in single-channel ABS and dual-channel ABS variants. Royal Enfield had also planned to bring in a next gen Classic 350 but plans have been delayed to beyond April 2021.
Noting increased demand in the 350cc segment, Royal Enfield has planned launch of the Meteor 350. Initially slated for a festive launch, this highly awaited cruiser is now expected only after Diwali. The Meteor 350 will be based on the company’s J platform and will be offered in three variants of Fireball, Stellar and a range-topping Supernova. The Meteor 350 is likely to carry a price tag of Rs.1.75 lakhs and will rival the recently launched Honda H’ness CB 350 in its segment.