Royal Enfield‘s monthly sales figures are out. Unfortunately for the Indian manufacturer, its total sales dropped for the fourth consecutive month. Total India sales fell 17% year over year in April. The manufacturer sold 62,879 units in April versus the 76,187 it sold in April 2018 according to its regulatory filing.
The 350cc and below segment is the culprit
The major reason for Royal Enfield’s sales decline centers on its 350cc and below models. Year over year sales in this segment fell 21% compared to the same period in 2018. The lagging sales are important because this area is the largest in Royal Enfield’s product line. Approximately 90% of its sales come from this segment.
Mid-range model good news
But there is some good news as well. Royal Enfield’s mid-range models saw very substantial growth. Their sales grew 21% year over year to 7,357 from 6,076 in the same period last year. Much of the growth can be attributed to Royal Enfield’s new Continental GT and INT 650 models.
These models have been popular both domestically and internationally. Royal Enfield exported 3,742 units in April versus 1,560 that were exported in April 2018. Although total sales figures for mid-range models are much smaller than the 350cc and below products, the mid-range segment posted a very significant gain of 140% versus last year.
Royal Enfield wants to increase its presence worldwide and recently entered the South Korean market last month. In addition, they continue to expand their presence in the South East Asian market. Hopefully, Royal Enfield will see increased sales as a result.
But Royal Enfield is not the only Indian manufacturer seeing lagging sales. Hero Motors posted a 17% drop in April. However, many other manufacturers are posting positive results in India with Suzuki making significant headway into the India market.