Eicher Motors said total Royal Enfield sales dropped 69% to 19,113 units in May 2020 from 62,371 units in May 2019.
Royal Enfield exports slumped 68% to 684 units in May 2020 as against 2,160 units in May 2019. The announcement was made post trading hours yesterday, 1 June 2020. The company sold 91 Royal Enfield motorcycles in April 2020 amid the nationwide lockdown.
Following the government’s directives with regards to resumption of business activities, Royal Enfield resumed operations at its manufacturing facilities from 6 May 2020. Production activities were started in a gradual and partial manner at the Oragadam facility in Chennai, Tamil Nadu. The company started the second shift at Oragadam towards the end of the month. The dealerships also opened in a gradual manner. By the end of the month, nearly two-third of the dealerships were open for business. These dealerships attained nearly the pre-COVID level of bookings towards the end of the month.
Total sales of VE Commercial Vehicles, an unlisted subsidiary of Eicher Motors, tanked 85.71% to 686 units in May 2020 compared with 4,801 units in May 2019. The announcement was declared after market hours yesterday, 1 June 2020. The unit sold 85 units in April 2020 on account of the ongoing lockdown due to COVID-19 outbreak.
In accordance with the directives of the Government and relaxations of lockdown in the country owing to COVID-19 pandemic, VE Commercial Vehicles commenced lean operations across all plants in the month of May 2020. As per government and administrative guidelines for the phased opening of the lockdown, many of the VECV’s suppliers and dealerships have resumed their services.
The company’s consolidated net profit fell 6.4% to Rs 498.70 crore on 1% rise in net sales to Rs 2,350.45 crore in Q3 December 2019 over Q3 December 2018.
Eicher Motors is the listed parent of Royal Enfield, the global leader in middleweight motorcycles. In addition to motorcycles, Eicher has a joint venture with Sweden’s AB Volvo – Volvo Eicher Commercial Vehicles (VECV) which operates in India’s commercial vehicle space. VECV has a complete range of trucks and buses from 5-55 tonnes, and its integrated manufacturing plant in Pithampur, Madhya Pradesh is the global hub for medium duty five- and eight-litre engines for Volvo Group.
Shares of Eicher Motors rose 1.03% to Rs 17,137.65 on BSE. The scrip hovered in the range of Rs 16,976.35 to Rs 17,450 so far.
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