Royal Enfield likely to record highest-ever sales in FY23, Auto News, ET Auto
Riding on the success of its newly launched entry-level offering Hunter 350, and an expanding retail network, Royal Enfield is well on the way to record its highest-ever sales in the ongoing financial year and eventually selling nearly a million units in FY24.
The Gurugram-headquartered motorcycle maker sold a record 82,235 units in October and has now sounded its vendors to prepare for production of 100,000 units a month January onwards, people aware of the plan told ET.
Even if the company manages to sell motorcycles at the current rate of 80,000 units a month, it is likely to record sales of 880,000 units by the end of this fiscal, as per ET’s analysis. That is 47% more than what Royal Enfield sold in FY22, and about 7% higher than its previous highest annual sale of around 822,000 units in FY19.
This, after almost three years of dismal sales, when an inflated price tag and expensive fuel put Royal Enfield’s aspirational motorcycles out of the reach for many.
A lot of the company’s turnaround hinges on the introduction of the Hunter, the most affordable Royal Enfield one can buy today. Bookings for the new motorcycle have crossed 50,000 units, accounting for a third of the company’s total orderbook, ET has learnt.
What has also buoyed sentiments of Royal Enfield is that Hunter has not eaten into the sales of the Classic 350 – the most successful motorcycle from the 121-year-old automaker. Indeed, it has expanded the addressable market for the company with its lower price tag, lighter weight, and better manoeuvrability, bringing in many younger, first-time buyers.
About 18% of the company’s sales today are to first-time motorcycle buyers compared to 13% before the launch of Hunter. Typically, more than two-third of the sales of the company are from consumers upgrading from their existing motorcycle to a Royal Enfield. Meanwhile, about two in every five Hunter buyers are in the 18-25 age group.