The slowdown in the auto market has hit Royal Enfield quite hard as it has reported a massive drop in sales of popular models from Bullet, Classic and Thunderbird range
Eicher Motors, the parent company of iconic motorcycle brand Royal Enfield, has reported a massive 21.6 per cent decline in demand in its net profit for Q1 of the current fiscal. Much of this has to do with the sales slump that prevails through the auto sector, thereby hitting the demand for even the popular motorcycles.
Last month, sales of Royal Enfield fell by as much as 27 per cent with only 49,182 units sold. In comparison, the bike maker sold 67,001 units in the same period last year. The only saving grace here is that the company’s exports stood at 5,003 units, which is a whopping 143 per cent more than the 2,062 units exported in July 2018.
Overall, the company’s sales stood at 54,185 units last month, thereby registering a 22 per cent decline from 69,063 units sold in the same month last year. The remarkable increase in the export figures is owing to the great response that the 650 twins have received worldwide.
So far, the Interceptor INT 650 and the Continental GT 650 have been introduced in Vietnam, Malaysia and Indonesia, apart from, of course, the Indian market. The flagship motorcycles have not only received a great response in all the markets but have opened doors to a completely new segment for the bikemaker. While it’s the Interceptor that’s more popular in India than the Conti GT, it’s actually the opposite in most other markets.
Next, the company is said to be working on a range of low-cost models that should help the bikemaker revive its sales performance in troubled times. It’s being said that the upcoming low-cost RE motorcycle would be based on the Bullet platform and would substantially undercut the Bullet 350 ABS on the pricing front.
Moreover, the company is even rumoured to be working on an all-new 250cc Royal Enfield model that could have a sub-1-lakh introductory price. This model should help the bikemaker capture a wider audience and benefit from the legacy it enjoys by making its products more accessible.