Royal Enfield Heading For 8 Lakh Sales In FY24 Despite December Decline

In December 2023, Royal Enfield faced a 7 percent decline in total sales. The company reported 63,387 units compared to the 68,400 units sold in the same month of the previous year. Despite this setback, a closer look at the segment breakdown provides valuable insights into the dynamics of Royal Enfield's performance throughout the year.

The domestic market experienced a 4 percent decline, although it constitutes a significant portion of Royal Enfield's sales. In December 2023, the company sold 57,291 units, representing a decrease from the 59,821 units recorded in December 2022. This dip is noteworthy and indicates the challenges faced in the evolving motorcycle landscape. However, when compared to November 2023, where domestic sales reached 75,173 units, the December figures show a 23.7 percent decrease.

Motorcycles with up to 350 cc engine capacity had a significant 10 percent drop in sales in December 2023, reaching 55,401 units compared to 61,223 units in the previous year. On the other hand, bikes with engine capacity exceeding 350 cc demonstrated resilience, witnessing an 11 percent increase from 7,177 units in December 2022 to 7,986 units in December 2023. The new Himalayan is to be contributed here as deliveries of it commenced in the same month.

For the J-platform bikes, the Royal Enfield Hunter played a crucial role, consistently achieving 15,000 or more units throughout the year, excluding the first two introductory months. While this bike has not yet surpassed the sales of the Royal Enfield Classic 350, it has emerged as another promising addition to the Royal Enfield portfolio with the potential to become yet another cash cow for the company.

In the international market Royal Enfield, witnessing a sharp 29 percent decline in December 2023. Sales dropped from 8,570 units in December 2022 to 6,096 units in the same period of 2023. We hope that the arrival of the Shotgun 650 and the Himalayan will see this number improve in the final few months of the financial year.

Royal Enfield's performance in the first nine months of FY2024 is commendable. The company dispatched a total of 6,30,273 units, marking a robust 16 percent year-on-year growth from 5,42,818 units in the same period of the previous year.

The festive season played a pivotal role in Royal Enfield's overall sales performance. December 2023 emerged as the best month in terms of sales, with a notable 80,958 units sold, contributing to the positive momentum.

Despite the challenges faced in December 2023, Royal Enfield remains optimistic about achieving its ambitious target of selling over 8 lakh units in FY2024. The consistent demand for both 350 cc and 650 cc motorcycles, particularly evident during the festive season, underpins this optimism, showcasing the brand's resilience and popularity in the market.