Royal Enfield lost 30% of global sales in the first eight months of the 2020, although the outstanding performance in the international activities. The manufacturer is booming in ASEAN, LATAM and Europe. However, the collapse of Indian industry dragged down the performance.
McD tracks new vehicles registrations across the World (over 80 countries), reporting data on calendar year. When you wish to compare data reported by us to those declared by the manufacturers, consider they usually report their “sales” (vehicles invoiced), which are usually different from “registrations”, accordingly with their fiscal year split.
Global 2020 sales hit by Covi19 spread
Following the 2019 stop to the continue sales growth, the 2020 is running very badly for the indian manufacturers, still too depending by the domestic market.
As other Indian motorcycles manufacturers the company base its success to the domestic market and he relevance of international sales are marginal, although in recent years growth all over, and considering the deep fall in place in India, the 2020 will be almost negative.
After the first 8 months of the year, global sales have been 330.000, down 30.6%. The data is in recovering from the -40.7% scored at the end of the first half.
Sales in India represent 99% of total and decline 32.2% while sales abroad are growing in any region.
Europe is the second more relevant region for this manufacturer and after 8 months is up 3.9%. Sales are growing in ASEAN (+14.1%, preliminary), LATAM (+22.1% preliminary) and North America (+21.5% preliminary). IN all these regions, Royal Enfield growth is spectacular and represent a sharp gain in terms of market share.
AS far as the full year 2020 projection, we foresee a total of 571.000 sales down 20.2% from the previous year.
Royal Enfield is a company 100% controlled by the Indian conglomerate Eicher. Located in Chennai (India) is among the largest motorcycles company worldwide. The history of this company started at the at the beginning of the 20th century. Indeed, in 1901 Royal Enfield brought to the market its first motorcycles.
In 1949 K. R. Sundaram Iyer launches Madras Motors to import British motorcycles within India’s territory. Besides Norton and Matchless machines, he sells Royal Enfields.
In 1952 Madras Motors receives an order from the Indian Army for 800 350cc Bullets. At the beginning of 1953, the shipping arrived in India and they proved to be a great success because of their hardy and easy to maintain aspects. Johnny Brittain won the prestigious Scottish Six Days Trial on his 350cc Bullet, “HNP 331”.
In 1955 the Redditch company became partner of Madras Motors and they founded ‘Enfield India’. They engaged in the construction of a purpose-built factory at Tiruvottiyur, near Madras.
In 1956 the Tiruvottiyur factory opened and Bullets began to be manufactured under license. The early production was based on machines that came from England in sets subsequently assembled in Madras. A total of 163 Bullets were built by the end of that year.
In 1964 the iconic Continental GT café racer was launched to great acclaim when a team of photojournalists ride it from John ‘o Groats to Lands End in under 24 hours, by way of 7 laps at the Silverstone circuit. The GT featured a racing petrol tank, clip-on handlebars, rear sets, a humped race seat, rev counter and a swept-back exhaust.
Production of motorcycles ceased in 1970 and the original Redditch, Worcestershire-based company was dissolved in 1971.
Enfield of India continued producing the ‘Bullet’, as “Enfield Bullet”, due to dispute around the legitimacy of using the “Royal” nameplate. Finally, in the 1999 a lawsuit over the use of ‘Royal’, brought by trademark owner David Holder, was judged in favour of Enfield of India. The brand “Royal Enfield” was back in the market with the Bullet 350 and the new models designed and produced in India, including Cafe Racers, Cruisers, Retros and Adventure Tourers.
In 1977, Royal Enfield was back at home because of Indian companies export of the 350cc Bullet to the UK and Europe. Sales grew rapidly as the bikes developed, followed by classic British motorcycle enthusiasts.
In 1994, the Eicher Group acquired Enfield India Limited. The company was renamed Royal Enfield Motors Limited.
In 2013 Royal Enfield commenced to manufacture at its second facility at Oragadam, Tamil Nadu. With increased capacity, the state-of-art factory will be the nucleus of the company’s global ambitions in the future.
In 2014, Royal Enfield introduced the possibility of a new retail experience by opening the first-of-its-kind exclusive gear store at Khan Market, New Delhi.