Royal Enfield reports negative growth in sales for the sixth consecutive month

04/05/2019 - 12:22 | ,  ,  ,  ,   | Suvil Susvirkar

Royal Enfield’s sales have plummeted for the sixth consecutive month. In April 2019, the company's sales dropped by 17% Y-o-Y to 62,879 units (April 2018: 76,187 units).

Royal Enfield Interceptor Int 650 Riding Shots Fro
While the domestic sales continue to suffer, the exports have witnessed a spike since the launch of the 650 Twins. Last month, the exports saw a jump of almost 140%.

Also read: Next-gen Royal Enfield Classic spotted with optional accessories

Do note that the entire auto industry in India has been affected by sluggishness, which can be attributed to the increase in the prices of two-wheelers due to the revised insurance rates, rising raw material costs and the mandatory addition of CBS and ABS tech to the vehicles to comply with the new safety norms. Check out Royal Enfield’s sales performance for the last six months in the table below:

Month Current Previous Year Difference (%)
November 2018 65,026 67,776 -4.1
December 2018 56,026 65,367 -14.3
January 2019 70,872 76,205 -7.0
February 2019 60,066 71,354 -15.8
March 2019 58,434 74,209 -21.3
April 2019 62,879 76,187 -17

Meanwhile, exports continue to rise. Last month, Royal Enfield exported 3,742 units as against 1,560 units in April 2018, which translates to a growth of 139.87%. The improved export performance can be attributed to the launch of the 650 Twins in various international markets. Since the launch of the Continental GT 650 and the Interceptor INT 650 in mid-November 2018, the company has witnessed positive sales performance. Below is the six-month export sales performance by Royal Enfield:

Month Current Previous Year Difference (%)
November 2018 718 2,350 -69.44
December 2018 2,252 1,601 40.66
January 2019 1,829 1,673 9.32
February 2019 2,564 1,723 48.81
March 2019 2,397 1,878 27.63
April 2019 3,742 1,560 139.87

Apart from India, the Royal Enfield 650 Twins are sold in the USA, Australia, New Zealand, Thailand, Vietnam, Indonesia and the UK. Royal Enfield had stated in the past that the 650 Twins are developed for the global markets. In November last year, Eicher Motors' MD and CEO, Siddhartha Lal, had stated that the 650 twins could reach global sales of up to 1 million units annually in next 5 to 10 years.

In more updates, Royal Enfield will commence operations at its first overseas plant (in Thailand) by the second half of the year to boost its sales in the ASEAN region. The company will assemble the motorcycles there from CKD kits sourced from India. Moreover, it is considering assembling the 650 twins in Brazil to offer the products at more competitive rates there. In terms of reach, the company entered the South Korean market with an exclusive store in Seoul last month.

Royal Enfield Interceptor 650 Baker Express Side P
The Royal Enfield 650 Twins command a waiting period of 3-5 months. Their production has been increased to address the overwhelming demand.

Also read: Royal Enfield 650 Twins register 5,168 units sales in just 5 months

In other recent news, Royal Enfield has commenced the testing of the BS-VI compliant models. The test mules of the BS-VI compliant next-generation Classic and Thunderbird have been spotted near Chennai.

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