Analyst Concall
Eicher Motors says rare earth magnets not a concern anymore
This story was originally published at 20:43 IST on 31 July 2025
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--Eicher Motors: Capacity utilisation is around 90% as of now
--CONTEXT: Comments by Eicher Motors mgmt in post-earnings analyst concall
--Eicher Motors: Focussing capex on new products than capacity build-up
--Eicher Motors: Cautiously optimistic on global mkts, betting on select few
--Eicher Motors: Using alternative options to tackle rare-earth metals issue
--Eicher Motors: No major launch expenses anticipated in rest of FY26
--Eicher Motors: Positive about festival time orders
--Eicher Motors: Will focus on urban market, saw green shoots in Q1
--Eicher Motors: Marketing to be aggressive in coming quarters as well
By Shakshi Jain and Pratiksha
NEW DELHI – Eicher Motors Ltd. had anticipated the issue tied to rare earth magnet imports early on and is now tackling the shortage through alternative options. While the company's production was hit briefly due to a shortage in the June quarter, it does not expect a similar episode in coming quarters. "It is a risk which we anticipated some time ago. So, we started working on the alternative material, or that at least about three, four months back. That's why I mentioned currently we are back on production with the alternative material, which we have protected. Now that alternative material import is not a major issue for us. We are out of that situation, of that challenge," a top company executive said in a post-earnings conference call with analysts Thursday.
Eicher Motors, which saw green shoots in demand for its products across urban markets in the June quarter, is also bullish about the festival season orderbook. It plans to be aggressive with marketing activations through the rest of the ongoing fiscal. Despite a capacity utilisation rate of around 90% presently, it is focusing its capital expenditure on new products instead of capacity enhancement, the company said. Eicher Motors, however, does not anticipate any major expenses tied to new launches in the rest of the year.
The Royal Enfield Bullet-maker is also cautiously optimistic about exports and betting on certain key international markets. The company is particularly hopeful about Brazil. Among other markets, Europe, Australia, Indonesia, Bangladesh, and Nepal have been performing well for the company. Meanwhile, Thailand and UK continue to pose some challenges, the company said.
Earlier in the day, Eicher Motors announced its earnings for the June quarter. The company's consolidated net profit for the quarter grew 9.42% on year to INR 12.05 billion. Revenue from operations rose nearly 15% on year to INR 50.42 billion. The company reported 9.7% growth in commercial vehicle sales to 21,160 units in Apr-Jun and motorcycle sales for the quarter were up 17% on year at 265,528 units.
On Thursday, shares of the company ended down 0.2% at INR 5,468.50 on the National Stock Exchange. End
Edited by Ashish Shirke
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