Royal Enfield’s sales in Latin America and Europe are growing rapidly, but in the domestic Indian market, things are not so rosy. By the end of May 2021, the number of RE motorcycle sales worldwide reached 276,423 units, which is 46.3% more than in the same period in 2020, however, 15.2% less than in 2019.
The best results among all Indian manufacturers
In terms of sales growth, Royal Enfield is the best performing Indian manufacturer this year. Sales have still not recovered, but overall they are doing better than their competitors. But in the European market, Royal Enfield has outstanding results: against the background of 2020, sales grew by 47 percent, and in Italy, France and the UK, the numbers are even higher (in Italy, for example, the growth was 147%).
On the domestic market, Royal Enfield’s sales continue to be affected by a powerful crisis: the level of sales at the end of May 2021 is lower than the level of 2019 by 13.9%. The situation is even worse in Sri Lanka: due to restrictions on import of motorcycles, sales here fell by 96% from the level of 2019. The rest of the regions are showing very optimistic sales growth.
So, the brand is successfully developing in Latin America, showing record after record: actual sales grew by an impressive 98.4%, especially in Brazil, Argentina and Colombia.
Sales are also growing in North America, Asia, the Pacific, and only in Southeast Asia the brand has suffered from the decline of the local industry.
In general, the problem of Indian manufacturers is too much dependence on the domestic market, which is fully confirmed by the results of 2020, and the current 2021 with the continuing powerful economic recession in India associated with the coronavirus pandemic., shows negative dynamics. Therefore, the decision taken several years ago to actively develop the international sales of Royal Enfield motorcycles somewhat brightens the situation, bearing the first positive results in this difficult period for India.
However, domestic sales accounted for 93% of global sales for RE, and 2020 turned out to be a really difficult year for the company, especially since Royal Enfield relied on a segment with a relatively large working volume, while more in demand in India were and remain less cubic motorcycles. So in the home market, Royal Enfield lost even more than other Indian companies – 31.2%.