Royal Enfield Sales Unaffected by Demonetisation

Demonetisation seemed to have little effect on Royal Enfield as it ended 2016 on a high note. The iconic Indian two-wheeler manufacturer sold 56,316 units in December 2016 as opposed to 40,037 units in the domestic market in the corresponding month last year. The above numbers mean that Royal Enfield sales improved by an impressive 41 per cent. The company had also disclosed that it wants to establish itself as a global player and expanded its dealership network internationally in 2016. Exports increased by 160 per cent as it managed to dispatch 1,082 units in December.

Another impressive statistic is that Year To Date (YTD) improved from 3,54,025 units in 2015 to 4,77,688 units in 2016. Royal Enfield also added 117 new dealerships in India (642 dealerships in total) and these have played a key role in expanding its sales. The bread-and-butter bike for RE still is the Classic 350 but the company said that it has received positive response for the Himalayan adventure tourer bike. The Himalayan is the first indigenously developed adventure tourer bike in India and also the first motor from Royal Enfield to have a counter balance shaft, oil-cooler etc. Given the positive response for the Himalayan in the domestic market, Royal Enfield also launched it in Australia and Colombia. The Himalayan will soon be sold in the European market as an EU-compliant Himalayan with an EFI engine was also showcased at EICMA auto show in Milan.

It also recently launched the Classic 350, inspired by the Redditch series motorcycle with three new colours – red, blue and green. For 2017, we expect sales of Royal Enfield to surge even more as demand for its classical-styled bikes keeps on increasing. The aspirational value attached with the iconic brand is very high and the fact that demonetisation hasn’t affected its sales is a testament to the same. For 2017, apart from dealer expansion we are looking forward for the flagship parallel-twin motorcycle to be unveiled before its official launch in 2018. The new bike will be an important bike for RE and its international aspiration. Also, we can expect the AB version of the Continental GT café racer bike to be launched in India. All in all, Royal Enfield rocked 2016 with respect to sales and we expect this positive momentum to continue in 2017 as well.