Royal Enfield sales 2019-20 have gone down significantly due to the prevailing slowdown in the economy. This year’s may be even lower because of COVID…
2019-20 was a very dull year for the complete auto industry. With the exception of Suzuki, all manufacturers registered degrowth in terms of volumes. Chennai based Royal Enfield, which is the largest motorcycle seller (between Rs 1.50 lakhs to 3.0 Lakhs) also suffered from the slowdown.
According to the official numbers shared by the brand moments back, it registered total sales of 6,97,582 units which are down by 15 percent over the base of 8,22,724 it set in financial year 2018-19. It means that it sold 1,25,142 units lesser in the last fiscal.
However, it says that it registered an emphatic growth of almost 96 percent in export numbers. It registered sales of 38,700 units. For some reason, these numbers shared by the company in the press note do not exactly match with the official SIAM sales data (we have discussed RE’s exports here).
As a result of the fall in sales, the company registered a profit after tax of 1827 crores, down from Rs 2203 crores in the corresponding period in 2018-19.
On Royal Enfield’s performance last year, Mr Vinod Dasari, CEO of the company said,
Through a challenging year, Royal Enfield has remained focused on sharpening the customer experience with emphasis on seamless and differentiated brand interface. We have had the best ever export performance in international markets during the year with a 96% increase as compared to last year. We have introduced new products and new initiatives to create better accessibility and build increased engagement. While new variants of the Bullet and Classic brought in more accessibility in product, the 600+ new Studio Stores created accessibility in terms of reach and footprint and brought the pure motorcycling experience closer to customers.
The company has already planned a major comeback into the market and has announced one new motorcycle launch every quarter for the coming few years (more details)!