Royal Enfield experienced another tough month domestically as 54,858 units were sold with 22 per cent YoY sales decrease
Royal Enfield has been facing a major slump in volume sales throughout the year due to the unfavourable circumstances prevailing in the two-wheeler industry as all the big guns are suffering from negative YoY growth. This could not change for the better last month as Royal Enfield posted 22 per cent sales decline as 54,858 units were retailed against 70,065 units during the same month in 2018.
The domestic sales, in particular, took a sizeable hit recently as it stood at 48,752 units in August 2019 with 28 per cent volume drop and the previous months of June and July saw 24 per cent de-growth with 55,082 units and 27 per cent with 49,182 units respectively. In contrary, the exports of the Chennai-based manufacturer ended at 4,642 units with a massive 191 per cent YoY growth in September 2019.
When compared to the corresponding month last year, Royal Enfield only retailed 1,597 units. This could be due to the good reception the Interceptor 650 and Continental GT 650 gained in the international markets over the course of nearly the last year. In cumulative terms, Royal Enfield’s domestic and export sales reduced by 17 per cent.
In September 2019, about 59,500 units were sold as against 71,662 units during the same month in 2018. The oldest two-wheeler manufacturer in continuous production sells a range of products in India including the Bullet, Classic, Thunderbird, Himalayan and the 650 cc motorcycles. However, the Classic series has long been responsible for garnering big volume numbers in the last several years.
The Classic 350 could not play a major chunk in sales leading to the brand switching its focus elsewhere as it launched a more affordable variant last month. The Classic 350 S costs Rs. 1.45 lakh (ex-showroom, Chennai) and is Rs. 9,000 cheaper than the regular Classic 350 and is reach is expected to be expanded soon across other states apart from Tamil Nadu and Kerala.
Royal Enfield has been spied testing the next generation versions of its Classic, Thunderbird and Bullet range with BSVI compliant engines already and they will more likely be introduced in the early parts of next year.