While sales of Royal Enfield motorcycles at around 551,000 units in CY21 are far lower than the pre-Covid-19 peaks, the demand is gradually returning to pre-pandemic levels, a top company executive said. In CY18, the company had sold about 838,000 motorcycles, which dropped to 691,000 motorcycles in CY19 and 540,000 in CY20.
“As far as booking numbers are concerned, we are close to pre-pandemic levels,” B Govindarajan, executive director, Royal Enfield, told FE. “But because of the existing semiconductor shortage, we haven’t been able to deliver as much.
”He attributed the revival of demand, at least in the mid-engine motorcycle segment of 350cc to 650cc, to the infrastructure build-up happening in the country. “Over the last two months, we have seen sentiments getting better even in rural areas.”“But the semiconductor shortage issue isn’t yet behind us,” Govindarajan added.
“If there was no shortage, of course, we would have sold more motorcycles. Even now we are in constant touch with those who have booked our motorcycles and are waiting,” he said.
At the same time, he added whatever could go wrong has already gone wrong ― winter storm shutting down chip plants in Texas in early 2021, fire at Renesas Electronics’ chip plant in Japan in mid-2021, and a surge in Covid-19 cases in Malaysia in late 2021. If this year there aren’t any natural calamities and 5G adoption doesn’t happen at breakneck speed, the supply of semiconductors will get better. “Now, the situation appears to be easing out and we are on a ramp-up path,” he added.
Earlier during the week, Royal Enfield launched the Scram 411, the adventure crossover motorcycle based on the Himalayan. Priced `203,085 onwards (ex-showroom), it is available for sale in India immediately and will debut in Europe and Asia Pacific markets by the middle of this year.
“The globally lauded versatility and competence of the Himalayan inspired us to reimagine the motorcycle in a younger, modern-day, urban context. The Scram 411 is the perfect crossover for young city-dwellers, who prefer a motorcycle that is fun and engaging to ride around the city, yet has a rugged appeal,” Govindarajan said.
