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Sales Drop: Royal Enfield Cuts Production by 50,000 Units

Sales Drop: Royal Enfield Cuts Production by 50,000 Units

Royal Enfield is facing tough times in the era of mandatory ABS for bikes above 125cc. Not just that, the 5-year insurance rule has taken the effective on-road price up by a considerable margin. The manufacturer earlier had to cut the total number of bikes produced by 50,000 in November 2018. Now, another 50,000 unit production-cut was announced by the brand. The already manufactured number of Royal Enfield bikes is increasing at a fast pace as sales number saw a downward trend for the company. The best-selling Classic 350 was earlier retailed for INR 1.38 lakh while current price for the same is INR 1.62 lakh. [caption id="attachment_357021" align="aligncenter" width="850"]Royal Enfield Classic 350 Redditch ABS Royal Enfield Classic 350 Redditch ABS Launched @ INR 1.79 Lakh[/caption] The first price hike came when they added a new swingarm and rear disc brake to the motorcycle. The addition of INR 10,000 to the price was wrong at that moment as they should have introduced both the ABS and rear disc brake at the same time. The total hike of INR 24,000 to the ex-showroom price should have been limited to just INR 15,000. Apart from this, the mandatory five-year insurance rule added four years of additional third-party cover to the on-road price. This was actually beneficial for the owners but added INR 5000 to the on-road amount. [caption id="attachment_369550" align="aligncenter" width="848"]Must-Have Royal Enfield Classic 350 Accessories Top 10 Must-Have Royal Enfield Classic 350 Accessories[/caption] The range of bikes now starts at INR 1.28 lakh for the dual disc Bullet 350. Also, the entry of Jawa into India made the fact sure that cult following for both the brands will divide again. Jawa may not have got such a huge number for themselves at the start but many potential Royal Enfield customers would have thought about getting more power and retro-modern styling for a minimal hike. Royal Enfield needs to work on its strategy for one more time and see how the numbers can be improved in such tough conditions. Source

Related Questions and Answers

Most Popular Answers for Royal Enfield
What is the mileage of Royal Enfield Bullet Electra in city?
2023-09-21 11:04:52 AM

The city mileage of Royal Enfield Electra 350 ranges from 25-30 kmpl but on highways, these figures can increase to 35-40 kmpl.

How do Royal Enfield Bullet Electra bikes work?
2023-09-21 10:56:31 AM

The Royal Enfield Bullet Electra E-bike System is powered by a fully integrated battery and provides pedal assistance through three levels of support with a rear hub motor. You can easily monitor battery charge and support level with the LED controller.

Can Royal Enfield Bullet Electra start without battery?
2023-09-21 10:43:44 AM

Yes, Royal Enfield Bullet Electra is equipped with both kick and self-start so in case if the battery gets discharged then you can start your bike through kick start.

Is Royal Enfield Electra good for long rides?
2023-09-21 10:42:03 AM

For long rides, the Royal Enfield Bullet Electra is a great choice. Both riding and pillion seats are more comfortable than that of classic and the bike has good torque and lesser vibrations compared to other RE models in this class.

Which one is better between Honda CB350RS or the Royal Enfield Continental GT 650?
2023-09-19 05:34:53 AM

Both the bikes are good in their own forte. the CB350RS seems like a bit of a missed opportunity from Honda. It could have used the capable foundations of the H’ness to create a more unique motorcycle with a more well-defined identity that would’ve appealed to an entirely new and different audience. Instead, it’s taken this middle-of-the-road approach and created a halfway house that we find hard to recommend to anyone except museum curators. On the other hand, the Continental GT 650 is a fun-to-ride cafe racer. The GT’s sporty riding position makes it much more suitable for twisty mountain roads and even high-speed straight-line blasts. To top things off, the twin-cylinder motor provides the performance and refinement that the 535 simply couldn’t.


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