Royal Enfield sales in March 2019 fell 21% to 58,434 units



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Royal Enfield Bobber concept 838cc machine.

Royal Enfield closed the 18/18 period with a marginal growth of 1% at 8,26,098 units, compared to the 8,20,492 units sold at FY17-18. Of this total, exports reached 20,825 units, 8% above 19,262 units. Domestic sales rose marginally for the period at 8,05,273 units, up from 8,01,230 units.

By March 2019, the decline in sales is 21 percent at 58,434 units, from 74,209 units sold in March 2018. Exports for the month increased 28 percent to 2,397 units sold, up from 1,878 units. Total sales for the month fell 20% to 60,831 units from 76,087 units sold in March 2018.

By the end of the fiscal year, Royal Enfield had cut its production twice, first by 25,000 units and by another 50,000. As such total target of 19 FY was reduced to 8.75 lakh units of 9.50 lakh units. The slowdown in production has been attributed to the labor strike in the company's factory, in general, low sales and inventory accumulation.

Stagnant Royal Enfield sales are in line with current market patterns that have contracted due to buyer's low sentiment, and the period of uncertainty is set to continue in the coming months. Royal Enfield is now working on its first wholly owned subsidiary in the Asia Pacific region. The plant in Thailand begins its journey as the company's first assembly plant outside India and is due to start operations in June 2019.

For FY19-20, Eicher Motors has announced a capital expenditure plan of 700 crore for Royal Enfield. The investments will be made in the RE Technology Center, in the construction of the second phase of the Vallam Vadagal plant and in the development of new platforms and products. In parallel, the company will focus on compliance with BS-VI emission standards and on strengthening product development capabilities. For 2019-20, Royal Enfield plans to produce 9,50,000 motorcycles.

Eicher Motors Ltd (EML) also announced the appointment of Vinod K. Dasari as Chief Executive Officer (CEO) of Royal Enfield. He joins the Board of Eicher Motors Ltd as Executive Director. He replaces Siddhartha Lal, who continues as MD of Eicher Motors, and will continue to support Vinod and the team in areas related to products and brands.

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