Royal Enfield sees sales crossing 1 lakh this year

RIDING on robust demand, Royal Enfield Motors aims to end the current calendar year with landmark sales. The oldest two-wheeler firm, part of Eicher Motors, is racing towards crossing one lakh annual sales for the first time, while continuing its dealer expansion drive into smaller cities and towns. “We continue to have a great run in our motorcycle business where we have been able to boost our production by working very closely with our suppliers. In the first quarter, we sold 23,899 units, up 41 per cent over the first quarter of 2011. Monthly sales have moved now to 9,000-plus units,“ according to Siddhartha Lal, managing director and chief executive officer of Eicher Motors. Two wheeler sales have been seeing some decline in the past two months though a few emerging players continue their strong ride. Royal Enfield too, continues to see strong demand for its Bul lets. In the first two months of the April-June quarter, the company has sold about 17,400 units in the domestic market, posting a growth of about 49 per cent over the same period previous year. At this growth rate, the company is expected to see its annual sales crossing one lakh units for the first time in its history. In 2011, it sold 74,626 units, up 42 per cent over 2010 volumes. “Though we are not giving the numbers at this point, but our ambition is to exceed the one lakh target this year itself and that will bring us to a very good level next year when our new plant near Chennai comes on stream. Given the ramp up plans, we will be hitting volumes of 12,000-13,000 from the combined facilities (existing and upcoming) very soon,“ Lal added. The company has already commenced construction activities for the new plant at Oragadam near Chennai and it is expected to commence production by the end of first quarter of 2013.