In October 2023, Royal Enfield enjoys 2.67% YoY growth
In October, domestic sales surged with a 6% month-on-month increase.
In the ever-evolving world of motorcycles, Royal Enfield continues to make its mark, as it records a marginal yet noteworthy 2.67 percent year-on-year (Y-o-Y) increase in sales for October 2023. This translates to a total of 84,435 motorcycles sold during this period, compared to the 82,235 motorcycles in the previous financial year.
B. Govindarajan, the CEO of Royal Enfield, expressed his satisfaction with the October results, highlighting the positive response to the recently launched Bullet 350. He also hinted at the company's plans for an exciting motorcycle launch in the upcoming month. With this, he confidently anticipates that their forthcoming motorcycles and initiatives will further propel their growth momentum.
Domestic Sales Surge
One of the most striking aspects of Royal Enfield's October report is the remarkable surge in domestic sales. The company's domestic sales for the month exhibited an impressive 6 percent month-on-month (MoM) increase. Specifically, this growth reflects sales of 80,958 units, compared to 76,528 units in the corresponding month of the previous year. This surge in domestic sales speaks volumes about Royal Enfield's continued popularity and demand in the Indian market.
While domestic sales are thriving, Royal Enfield experienced a decline in its exports. The company's exports dropped by a significant 39 percent, with October 2023 seeing 3,477 units sold, as opposed to 5,707 units in October 2022. Analysts attribute this decrease in exports to Royal Enfield's extensive portfolio of 350cc and above motorcycles. Export markets, it seems, have a higher demand for lower cc bikes, which led to this notable decline.
A closer look at the model mix reveals some interesting trends. In terms of engine capacity, Royal Enfield saw a 2 percent increase in sales of models with engine capacities up to 350cc, reaching a total of 76,075 units. On the other hand, models with engine capacities exceeding 350cc experienced a more significant surge, with a 13 percent increase, reaching a total of 8,360 units. This shows that there is a growing demand for higher cc models, a trend that Royal Enfield is successfully capitalizing on.