Royal Enfield is a company known by everyone and has a great portfolio of motorcycles that are famous among people of all age groups. Recently, the Royal Enfield sales report has been released by the company. It states that it has sold 44,038 units of motorcycles in July 2021. There’s not much increase as compared to last year as the number stood at 40,334 last year. Talking about volume growth, it has been reported less than 4k units.
Wondering what’s working for the company? That’s exports. The company has nearly doubled the exports in July 2021 to 4,748 units from 2,409 last year.
The Segment that Gained the Most: 350cc Segment
Yes, that’s right, it’s the 350cc segment. This segment has performed very well in the past and it continues to still perform nicely. It has reported a 3% growth YoY at 37,556 units this year in July. The wide range that Royal Enfield offers in this segment is comprised of Bullet, Classic, Electra, and Meteor.
Royal Enfield sales report listed sales of 6,482 units in the above 350cc segment offering the Himalayan and 650 Twins. The number has risen from 3,950 units in July 2020.
The month-over-month sales of the company rose at 2.30% growth to 44,038 units. These sales reports are fair enough while considering the pandemic complications brand had to face. The exports made this month has decreased significantly with a decline in the volume of fewer than 2.5k units. This is not a good sign as the number should have improved due to the improvement in the pandemic situation.
Domestic sales have shown good growth with a rate of 9.7% on MoM. There was stability represented in the 350cc segment while above 350cc segment gave 11.95% as growth rate. The volume growth has beans stable in the domestic market but has been affected in terms of exports.
Auto Industry Facing Challenges
The whole auto industry was exposed to the complications of the pandemic in the last 15 months. Due to this, Royal Enfield has also been affected a lot in terms of sales and manufacturing. There has been a mixture of sales growth in the past few months for the company, sometimes positive and sometimes negative.
Strategies Opted by Royal Enfield
There have been several strategies being launched by the company to tackle the effects of the pandemic. Some of these programs are ‘Service on Wheels’, ‘Online Booking’, ‘Home Test Drive’, and many more. A great initiative that was launched is ‘Contactless Purchase and Service Experience’. This program is a great move in favor of the people who are conscious of their safety.
The way, ‘Home Test Ride’ works is that people can visit the Royal Enfield website. Then they are required to select the vehicle they prefer and book a test drive with just a few clicks. The motorcycle will arrive at the customer’s home for the test drive at the desired timing.
On the other hand, the ‘Online Booking’ program allows customers to visit the website and select the desired vehicle. They can select all the features and attachments they want. Then the site will connect them with the nearest dealership regarding the fulfilling of all the payments and formalities. As soon as all the formalities are fulfilled, the customers get their motorcycle delivered to their doorstep.
The company is working on several similar programs to enhance customer experience. We hope that these will help it to revive the lost growth and we can see the results in the next Royal Enfield sales report.