Royal Enfield Posts Best-Ever Quarterly Results

Royal Enfield has posted its best ever performance in the Quarter ended June 2017. In this quarter, Royal Enfield sold 1,83,731 motorcycles, registering its best ever quarterly sales volume and posting a growth of 24.7 per cent over 147,349 motorcycles sold in the same period last year. Royal Enfield also posted its highest ever quarterly income from operations at ₹ 2,001 crore (net of excise duty) for Q1 2017-18, a growth of 28.6 per cent over the corresponding period last year. In July, Royal Enfield overtook Hero MotoCorp and Bajaj Auto in market capitalisation to become the most valuable two-wheeler company.

Commenting on Royal Enfield’s performance, Siddhartha Lal Managing Director and CEO Eicher Motors Ltd said, “Royal Enfield has performed extremely well in the first quarter of FY 2017-18 despite a number of issues in the domestic market like BS-IV transition and GST rollout that affected the industry. In the face of these challenges, Royal Enfield transitioned to the BS-IV norms with no BS-III inventory.

“Royal Enfield has been investing in building capacity and capabilities. In May 2017, Royal Enfield moved into its technical centre located at Leicester, UK. The area for office and testing is spread over 36,000 square feet and currently have more than 100 employees working on developing our upcoming platforms. Our immediate business outlook remains strong and Royal Enfield continues to grow consistently, competitively and profitably towards leading and expanding the mid-sized motorcycle segment globally” Lal added.

In July too, Royal Enfield reported sales of 64,459 motorcycles, a 21 per cent increase over 53,378 motorcycles sold in the same month a year ago. The Royal Enfield Classic 350 continues to lead sales for the company, accounting for over 80 per cent of the company’s total sales. Royal Enfield will be introducing a new fuel-injected version of the Himalayan adventure tourer and development of all-new models with a new 750 cc parallel-twin engine is also underway.

The new 750 cc platform, believed to power two new models – a cafe racer and a classic, is expected to be launched in the coming months. The new motorcycles have already been spotted several times undergoing testing in India. A fuel-injected version of the Royal Enfield Himalayan will also be available from October 2017. Sales of the Himalayan had been put on hold for some time now since the earlier model didn’t meet the updated Bharat Stage IV emission regulations. The Himalayan already has a waiting period of two months from the date of booking.

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