Royal Enfield experienced a significant 18% drop in sales in 2019, after six successful years in a row, with the company’s sales growing year over year. Worldwide sales are growing, except for the Indian market, which is responsible for the overall decline. In Europe, sales have shown explosive growth, and the UK has become the second largest market for RE. Argentina and Colombia also showed good results.
Royal Enfield Worldwide Sales
Royal Enfield has set record after record for six consecutive years, building its presence, improving its image and expanding its customer base. The company uses an unusual marketing strategy – it keeps one of the oldest motorcycle lines in the world up-to-date, and sells “old” motorcycles in a world ruled by novelty.
Royal Enfield’s sales figures from previous years are impressive, thanks in part to the explosive growth of the Indian market, where RE is the undisputed leader in the mid-size segment. In numbers, their results are as follows: in 2012, 469,741 units were sold, and after six record years in a row – in 2018 – 846,000 units.
Growth in the Indian market has been a priority for the company for many years, and only recently the brand has paid attention to other markets in order to strengthen the brand’s position and differentiate risks due to its total dependence on local market trends. The company fully felt the disadvantages of this dependence on the characteristics of one, albeit large, market in 2019: The first drawdown of the Indian market in many years led to a significant decrease in TVS sales – 716,000 units, which is a drop of as much as 18%.
2019 confirmed the company’s concerns about an overly clear correlation between local market trends and company results. After several years of successful growth, India is emerging as a risky player, which has proven to be dangerous for a growing company to bet on, even with excellent sales growth in international markets.
Direct sales to India were down 19.2%, and given that this market accounts for 97% of the brand’s sales, good performance in other markets is unable to reverse the negative trend. However, in all other markets, the company’s products showed a steady growth in sales: + 22% in the Asian market (China, Japan, Korea, Taiwan), +16.7 in North America (USA, Canada, Mexico) and + 82% in Europe: explosive growth in sales in the UK (+ 221%), which became in fact, the second key market for Royal Enfield, followed by Germany (+ 73%), France (+ 82%), Italy (+ 24%), Spain (+ 59%). And despite the stagnation of the South American market, RE has good results here too – in particular, + 269% in Argentina and + 40% in Colombia. (So the bankruptcy of Royal Enfield, as is the case with Norton Motorcycles, is not expected anytime soon)