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Informist, Monday, Feb. 10, 2025

 

--Eicher Motors:To launch all Royal Enfield vehicles in global mkts by March

--Eicher Motors: On track to complete announced capex of INR 100 bln in FY25

--Eicher Motors: Our CV inventory healthy, discount levels continue to drop

--Eicher Motors: Optimistic on commercial vehicles in Jan-Mar, FY26

--Eicher Motors: Believe can outgrow motorcycle industry going forward

--Eicher Motors: New CKD unit coming up in Brazil, bullish on that market

--Eicher Motors: Cautiously optimistic on international markets

--Eicher Motors: To continue to focus on middle weight segment for growth

 

By Sunil Raghu and Alina Geogy

 

AHMEDABAD/MUMBAI – Eicher Motors Ltd. is on track to achieve its pre-announced capital expenditure of INR 100 billion in 2024-25 (Apr-Mar), the company's management said in a post-earnings analyst call on Monday.

 

The New Delhi-based company sells trucks and buses under the Eicher and Volvo brands in India through VE Commercial Vehicles, a joint venture with the Volvo Group. It is also the owner of Royal Enfield, more than a century-old motorcycle brand.

 

The company sold 269,039 Royal Enfield motorcycles in Oct-Dec, up 17% on year. In India, the company sold 241,971 units, up 13% from Oct-Dec of the previous year. In international markets, it shipped 27,068 units in Oct-Dec, an increase of 71% on year. Such is the optimism that the company's management believes the company can outgrow the motorcycle industry going forward.

 

This year, Eicher Motors' performance in the international market has been "very good", particularly retail business. It sold around 70,000 units in international markets from April to December, up 38.5% on year. Markets leading the growth are the UK, Brazil, Italy, Europe and North America. Despite the bullishness, the management said that in international markets, it was "cautiously optimistic" and in the coming year, its focus would be more on brand-building.

 

The company also inaugurated its first fully-owned knocked-down kit plant in Thailand. It also has a similar plant coming up in Brazil, a market on which it is bullish. The company has started operations in Bangladesh and has opened one of the largest flagship stores in Dhaka.

 

It is also preparing to launch the limited edition Shotgun 650 in collaboration with Icon Motorsports. There would be only 100 Shotgun 650 motorcycles available worldwide. The company's management said that, in fact, it would launch all the Royal Enfield models due for global launch by the end of March.

 

The company said Royal Enfield was the leading middleweight brand in the UK, and among the top three in Europe and in Americas, especially in the middle-weight category. The management now wants to focus on this category to further sales growth.

 

On the commercial vehicles segment, the management said it declined 1.7% year-on-year in Oct-Dec to 117,161 units. This was primarily due to softer demand attributed to lingering softness in heavy duty and light and medium duty trucks post the General Election and an uneven monsoon in many parts of the country. In contrast, demand for heavy duty buses remained very strong, with overall bus volumes up 17.3% on year. Compared to this, total industry volume of exports grew a modest 0.3%, reflecting the geopolitical challenges impacting many markets.

 

Eicher Motors said that its CV inventory was healthy and the discount levels that the industry was offering had continued to drop. The management said it was optimistic about the growth of its commercial vehicles business in Jan-Mar and next year.

 

On Monday, Eicher Motors reported its all-time high quarterly sales volume of Royal Enfield motorcycles and VE Commercial vehicle units, propelling the company's December quarter revenue to a near two-year high.

 

The company reported a net profit of INR 11.7 billion for Oct-Dec, up 18% on year. Its consolidated revenue from operations came in at INR 49.7 billion, up 19% on year. The company reported its earnings after market hours, and its shares closed 0.7% lower at INR 5,335.35 on the National Stock Exchange.  End

 

Edited by Avishek Dutta

 

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