Royal Enfield roars back into global contention with sales rise

Royal Enfield's sales accelerated like a Bullet motorcycle in the first three months of the year, with the Indian-owned bike manufacturer recording its best quarterly sales yet.

The heritage brand, which has staged a speedy revival and last year overtook Harley-Davidson in terms of global sales, sold almost 93,000 vehicles in the three months to the end of March, a rise of 45 per cent on the same quarter a year ago.

Royal Enfield's first-quarter revenues were up 64 per cent at £102m, while earnings before interest and tax were £25m, a rise of 85 per cent on the same quarter a year ago.

The company, which is owned by Eicher Motors, a Mumbai-listed manufacturer of engines and commercial vehicles, accounts for more than a third of Eicher's group revenues but more than 80 per cent of operating profits. First-quarter net profit at Eicher rose 50 per cent to £23m.

Royal Enfield, which was founded more than a century ago in the Midlands and has been producing its Bullet model since the 1940s, recently announced plans to return to the UK with a research and development base.

Eicher also has big plans to push the brand worldwide from its manufacturing base in Chennai, particularly in the Americas. The parent group's goal will be to tap the growing need for affordable mobility across the globe, which is expected to continue to drive the market for motorbikes. Analysts say that by 2021, more than 160m two-wheelers will be produced annually - a third more than today.

Siddhartha Lal, managing director and chief executive of Eicher Motors, said: "We will continue to invest further into the brand, its distribution and globally relevant products that will be essential for us to achieve global leadership in the midsize motorcycle category."

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