In a month when business plans have gone awry, and bears significance like nothing has in living memory, Royal Enfield did have something going as per plan. Its BSVI transition has gone smoothly, and the company successfully cleared all of its BSIV inventory by March 20, 2020.
This bodes well, for when the world returns to some semblance of its former glory, Royal Enfield can get on with sales of BSVI vehicles straight off the bat. The deadline for BSVI transition was yesterday, i.e., March 31, 2020. However, not all manufacturers have been able to sell their BSIV ware in the stipulated period. While a 10 day extension was announced earlier, in the stark reality of lockdown, the current extension does no good.
Royal Enfield March 2020 Domestic Sales and Exports
| RE | March | March | Growth |
|---|---|---|---|
| Sales | 2020 | 2019 | % |
| Domestic | 32,630 | 58,434 | -44% |
| Exports | 3,184 | 2,397 | 33% |
| Total | 35,814 | 60,831 | -41% |
For March 2020, sales of bikes upto 350cc capacity is reported at 45 percent decline. Sales fell to 30,372 units from 54,870 units. For FY20, segment sales fell 19 percent, down to 6,19,897 units, down from 7,67,678 units.
Sales of bikes above 350cc capacity fell 9 percent, down to 5,442 units from 5,961 units. For the FY just concluded, segment sales did in fact grow by 30 percent, up at 76,050 units from 58,420 units. In essence, segment success can be attributed to the 650 Twins that are being exported, as well as being sold in India. In fact, exports in March 2020 improved 33 percent, up at 3,184 units from 2,397 units. In all, exports for FY20 is up 89 percent, up at 39,296 units, up from 20,825 units.
Royal Enfield FY 2019/20 Domestic Sales and Exports
| RE | YTD | YTD | Growth |
|---|---|---|---|
| Sales | 2019’20 | 2018’19 | % |
| Domestic | 6,56,651 | 8,05,273 | -18% |
| Exports | 39,296 | 20,825 | 89% |
| Total | 6,95,947 | 8,26,098 | -16% |
Despite the positives, total sales for March 2020 is down 41 percent at 35,814 units, down from 60,831 units. Total sales for FY20 fell 16 percent. Down to 6,95,947 units from 8,26,098 units. In the current backdrop of a pandemic, production activity was suspended on March 23, 2020. As per current directive, local manufacturing and sales operations are closed until April 14, 2020 following a 21 day lockdown announcement made a few days earlier.
Royal Enfield 350 Bullet variants with BSVI updates are now listed on the company website. The engine is now FI and not carburatted. A catalytic converter handles emission. Power output is slightly lower and torque output unchanged. Royal Enfield Bullet 350 BSVI is listed at price of Rs 1.21 lakh, and Bullet 350 ES BSVI at Rs 1.37 lakh.
Source: Bike - rushlane.com
