ROYAL ENFIELD

  • Demand: It continues to have a strong order book, with a healthy inquiry and booking rate for Meteor and the new Classic. There is no cannibalization within Meteor and the new Classic as the consumer profiles are completely different.

  • Realization increase: Around two-third of the increase was due to price hikes and the balance was due to a better product mix – higher exports and better model mix (higher share of high value variants).
  • Semiconductor shortage: The situation has improved since the end of Sep’21 and is expected to improve in 2HFY22.
  • Export: 2QFY22 witnessed a strong momentum in exports. In the international market, it added nine exclusive stores (149 outlets in total) and three new multi- brand outlets (over 650 stores). It expects exports to warmer countries to increase when North America and European countries face their winter season. Apr’21/May’21/Jun’21 are peak season for exports.
  • Domestic network expansion: In 2QFY22, it added 14 new studio stores (1,052 outlets in total) and 20 large stores in the domestic market (1,053 stores in total).

  • Revenue from accessories: It has doubled with the usage of the MIY initiative (MIY app has ~90% penetration). MIY has now been extended to apparel, including riding jackets, shoes, and helmets.

VECV

  • Demand outlook: The CV industry is seeing a recovery in growth across segments like mining, construction, industrial, e-commerce, etc.
  • CNG portfolio: EIM is seeing strong growth in its CNG portfolio amid the rise in diesel prices. Almost 50% of sales have shifted to CNG.
  • Network expansion: It added 26 aftermarket touch points in 2QFY22 to address new markets like East India and other parts of the country.
  • New launches: It launched a range of six heavy duty Volvo FM and FM-X trucks for mining and similar applications in Sep’21.


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