Royal Enfield has over three million customers waiting to upgrade to higher-powered motorcycles. The launch of Royal Enfiled’s 650 cc twin-engine models in late 2018 has boosted the 500-800 cc motorcycle segment in the last eleven months. The segment doubled domestic sales to 6,357 units between April 2018 and February 2019, compared to 3,161 units in the same period the previous year. According to SIAM, the growth was almost fivefold in February to 1559 units compared to 303 units in the same month last year.
In February 2019, 304 units of the 650 Twin were manufactured out of the total 3289 units produced in the segment. According to reports, Royal Enfield’s twin-engine models were launched in mid-November 2018. Production for the 11 months ended February this year grew to 15,463 units, with around 8017 units of 650 Twins compared to the total production of 9,394 units during the same period last year.
Royal Enfield’s spokesperson said the upper end of the mid-sized segment is largely underserved, and there are hardly any motorcycles at this price point.
The spokesperson added that the Interceptor 650 and the Continental GT 650 have been game changers in the premium mid-sized motorcycle segment, with compelling style and highway capability.
Royal Enfield has over three million customers waiting to upgrade to higher-powered motorcycles. The Interceptor 650 and the Continental GT 650 are appropriate products to tap into this pool of customers waiting to upgrade from their existing 350cc and 500cc motorcycles. The 650 Twins also attract new customers who are waiting for more premium Royal Enfield offers.
The company envisages the Royal Enfield Continental GT 650, which will be launched in 2018, as capable of unlocking the potential in the segment.
Exports in the segment also grew to 1609 units in February 2019, of which 1448 units were the RE product, as compared to total exports of 436 units in the same month a year ago, led by Harley Davidson Motor. The segment has products like Street Rod, Street 750, and Street 500 (this model was not in production in February this year) from Harley Davidson Motor Company India, CBR 650F from Honda Motorcycle and Scooter India (this model was not in production in February, this year), Ninja 650, Z650, Versys 650, ZX6R and Vulcan S from India Kawasaki Motors Pvt Ltd, DL650XA and GSX-S750 from Suzuki Motorcycle India (which were launched within last one year). Triumph Motorcycles has nine models in this segment under the brands Tiger, Street Triple, and Daytona.
Exports between April 2018 and February 2019 also increased to 8,334 units from 5,501 units during the same period last year. This period was led by 3090 units of 650 Twin and Street 500.
The growth of this segment also comes at a time when the production and sales of models with engine capacity of 350cc to 500 ccs and 800 ccs to 1000 cc have shown a decline. Output of 350 ccs to 800 ccs has decreased from 12113 units in February last year to 5009 units in February 2019. Domestic sales during the comparable period declined to 2,533 units compared to 7,576 units last year. Exports also declined to 2858 units this February compared to 4664 units in the same month last year.
However, the 1000cc to 1600cc model saw marginal growth in sales during February 201,9, at 113 units compared to 108 units last year.
