Demand is returning to pre-pandemic levels, confirms Royal Enfield as a manufacturer optimistic it is on a ramp-up path.
While sales of Royal Enfield motorcycles are well below pre-Covid-19 peaks at around 551,000 units in CY21, demand is gradually returning to pre-pandemic levels, a top executive at the company has said. In CY18 the company had sold approximately 838,000 bikes, down to 691,000 bikes in CY19 and 540,000 in CY20.
“In terms of booking numbers, we are close to pre-pandemic levels,” Royal Enfield Executive Director B. Govindarajan told FE. “But because of the existing shortage of semiconductors, we couldn’t deliver that much.
“He attributed the revival in demand, at least in the 350cc to 650cc mid-engine motorcycle segment, to infrastructure build-up in the country. “In the last two months, we have seen that the mood has improved even in rural areas.” “But the problem of semiconductor shortages is not behind us,” Govindarajan added.
“If there weren’t a shortage, we would of course have sold more bikes. Even now we are in constant contact with those who booked and maintain our bikes,” he said.
At the same time, he added that everything that could go wrong has already gone wrong — a winter storm that shut down chip factories in Texas in early 2021, a fire at Renesas Electronics’ chip factory in Japan in mid-2021, and an increase in Covid-19 cases in Malaysia at the end of 2021. If there are no natural disasters this year and the rollout of 5G does not happen at breakneck speed, the supply of semiconductors will be better. “Now the situation appears to be easing and we are on a ramp-up path,” he added.
Earlier in the week, Royal Enfield launched the Scram 411, the adventure crossover motorcycle based on the Himalayas. Priced from `203,085 (ex showroom), it is available now in India and will be launched in the European and Asia-Pacific markets later this year.
“The Himalayan’s universally acclaimed versatility and capability inspired us to reinvent the bike in a younger, modern, urban context. The Scram 411 is the perfect crossover for young city dwellers who want a bike that’s fun and cruising around town, yet has a rugged appeal,” said Govindarajan.
https://www.financialexpress.com/express-mobility/booking-numbers-close-to-pre-pandemic-levels-royal-enfield/2465215/ Booking numbers close to pre-pandemic levels: Royal Enfield