Royal Enfield Overtakes Yamaha in Sales
With a 53% jump in sales in FY16, the Eicher Motors-owned co joins the top 5 in market share
New Delhi: Royal Enfield has been the fastest growing motorcycle maker in the country in recent years and has now overtaken Yamaha Motor to join the top five in market share. Eicher Motors-owned Royal Enfield sold a 498,791 motorcycles in the domestic market 2015-16, 53% more than the previous year’s sales of 324,055 bikes.
Yamaha India, however, saw its motorcycle sales slip 4.4% year on year to 332,958 in the last fiscal. Its presence in scooter segment has helped Yamaha India stay ahead of Royal Enfield in the entire two-wheeler market.
Royal Enfield is the only motorcycle maker in the top five that recorded double-digit sales growth last fiscal. Market leader HeroMoto Corp and third-placed Honda Motorcycle & Scooter India reported a fall in sales while Bajaj Auto and TVS Motor grew less than 8%.
“Their strategy to focus on niche segments, and not go into mass market has really paid off. If you look at it, Royal Enfield has been able to create not only products for the market, but also the market itself for those products. They have created a cult for biking in India,” said Rajeev Singh, automotive head at KPMG in India.
Royal Enfield’s volume sales grew by more than 50% in each of the past four years, and to keep up with the growth in demand it is in the process of setting up a third plant near Oragadam in the outskirts of Chennai. The new plant will increase its production capacity to 900,000 by 2018. The Chennai-based company has been looking to expand its international presence as well. Last year it acquired UK-based high-performance motorcycle chassis and components maker Harris Performance and Siddhartha Lal, CEO of Eicher Motors, even moved to London. Also, in the last year, Royal Enfield has entered Thailand, opened sales subsidiary in the US, and started exclusive retail stores in France and Spain. It has more than 400 dealerships and 10 exclusive brand stores overseas.
In India, the company recently launched 410 cc adventure tourer Himalayan to enter a new segment. Royal Enfield now has Himalayan Electra, Classic, Thunderbird and Standard in its portfolio.