Royal Enfield one bright spot in gloomy motorcycle market

At a time when the Indian motorcycle industry is witnessing a prolonged downhill ride, niche bike maker Royal Enfield has defied the trend posting over 50 per cent sales growth for the April-September period.

By: | Updated: March 21, 2016 10:25 AM

royal enfield

According to analysts, Royal Enfield has been able to defy the market trend mainly due to its mid-range positioning of its products, with price ranging between Rs 1.17 lakh and Rs 2.16 lakh (on-road in Delhi). (Reuters)

At a time when the Indian motorcycle industry is witnessing a prolonged downhill ride, niche bike maker Royal Enfield has defied the trend posting over 50 per cent sales growth for the April-September period.

The maker of popular bikes like, Bullet, Classic and Thunderbird, sold 2,29,538 units in the April-September period compared with 1,52,666 units in the same period of the previous fiscal, up 50.35 per cent.

The overall motorcycle sales in India were down 4.06 per cent during the six-month period at 55,91,328 units as against 53,64,391 units in the same period last fiscal.

"Demand for our products continues to be exceedingly high and our order books continue to be very strong and healthy. We are absolutely on track with our plans to manufacture 4,50,000 units by the end of 2015," a Royal Enfield spokesperson said.

"In April-June period we sold 1,06,613 units and we have bettered that during July-September period where we sold 1,27,611 units. That makes the third quarter of 2015 the best ever quarter at Royal Enfield," the spokesperson added.

The company's performance is in sharp contrast to the overall segment, which has been reeling under a slowdown with rural sales affected by below normal monsoon in several parts of the country.

Market leader Hero MotoCorp saw its motorcycle sales dip by 4.99 per cent to 28,11,421 units during the April-September period as against 29,59,192 units in the same period year ago.

Similarly, motorcycle sales of Honda Motorcycle & Scooter India dropped by 15.45 per cent to 7,67,212 units from 9,07,489 units year ago.

Bajaj Auto saw its domestic sales grow marginally to 9,55,148 units in April-September period compared with 9,52,492 units in the same period of the previous fiscal.

According to analysts, Royal Enfield has been able to defy the market trend mainly due to its mid-range positioning of its products, with price ranging between Rs 1.17 lakh and Rs 2.16 lakh (on-road in Delhi).

Top-end player Harley Davidson sold 2,176 units during the last six months in India compared with 2,307 units in the same period of previous fiscal, a dip of 5.67 per cent.

Similarly, British superbike maker Triumph reported 11.41 per cent decline in its sales during the period at 590 units as against 666 units in same period of the last fiscal.

Do you know What is Anti-Lock Braking System, Power Steering? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Get the latest cars price and upcoming bikes price in India exclusively at Financial Express. Stay tuned for new cars and bikes reviews, follow us on twitter, Facebook and subscribe us on YouTube for latest auto news.

Next Stories
1Volkswagen made several defeat devices to cheat emissions tests: Sources
2Takata air bag problem widens to some 2015 GM vehicles
3Volkswagen considers cutting temporary worker numbers: Works council