Royal Enfield reports 8% dip in domestic sales, grows internationally
Royal Enfield, the renowned motorcycle manufacturer, has reported an 8% decrease in total sales volume for May 2024, compared to the same period last year. The company sold 71,010 motorcycles this May, a significant drop from the 81,870 units sold in April and the 77,461 units sold in May of the previous year. This decline is primarily attributed to a weak domestic market and a notable 13% fall in sales of models with engine capacities up to 350cc.
International sales and high-capacity models provide boost
Despite the domestic sales slump, Royal Enfield experienced a surge in certain segments. Bikes with engine capacities exceeding 350cc saw a substantial 32% rise in sales, totaling 11,158 units. Additionally, the company's international business volumes grew by 12%, with 7,479 units sold. This growth indicates a strong global demand for Royal Enfield's high-capacity models despite the challenges faced in the domestic market.
Royal Enfield faces stiff competition in middleweight category
The Chennai-based firm is encountering increased competition in the middleweight category of motorcycles. Rivals such as Bajaj Auto, Hero MotoCorp, among others, have launched products offering higher value propositions at similar or lower price points than Royal Enfield's popular 350cc models. This competitive market landscape has contributed to the company's recent dip in domestic sales.
RE to launch new model amid competition
In response to the competitive market, Royal Enfield is set to launch its latest model, the Guerrilla 450. This new roadster is expected to take on rivals like the Hero Mavrick 440, KTM 390 Duke, and Triumph Speed 400. The Guerrilla 450 will feature a unique instrument cluster and tail design, while offering significant hardware upgrades compared to other models in its category.
