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Informist, Friday, May 22, 2026

 

--CONTEXT: Eicher Motors mgmt's comments in post-earnings analyst concall
--Eicher Motors: Bullish about growth prospects for Royal Enfield
--Eicher Motors: Trend of premium motorcycles expected to grow in India
--Eicher Motors: Royal Enfield sales doing very well in Latin America
--Eicher Motors: Focusing on Brazil as next big market for co after India
--Eicher Motors: Need to wait for replacement cycle growth to kick in

 

By Anand JC and Gopika Balasubramanium

 

NEW DELHI/MUMBAI – Eicher Motors Ltd. said Friday that Brazil has emerged as the fastest-growing international market for its Royal Enfield motorcycles. "Overall, in Latin America, we have been doing outstandingly well. In fact, we are now focusing on Brazil as the next big market after India," the company's management told analysts at a post-earnings conference call.

 

Royal Enfield is the second-biggest seller of middle-weight motorcycles in Brazil. A middleweight motorcycle is a class of bikes that sits between small, entry-level lightweight motorcycles and massive, high-powered heavyweight machines. These motorcycles generally have an engine capacity of 500 cubic centimetres to 900 cc. However, in India, it starts at around 350 cc. Royal Enfield Guerilla 450 was crowned motorcycle of the year in Brazil last year.

 

In Brazil, Royal Enfield motorcycle sales grew 71% in 2025-26 (Apr-Mar), the company said. Elsewhere, while tariff issues are currently being ironed out in the US, the European market contracted, the company said. "In the degrowing market, we are maintaining market share. But I must tell you, in Europe, I call it a market adjustment year," a senior executive said, talking about adjustment around fuel emission norms.

 

Earlier in the day, the company reported a consolidated net profit of INR 15.20 billion on revenues of INR 60.80 billion. Eicher Motors disclosed its March-quarter results after market hours.

 

Around 30% of Royal Enfield's customers are under 25 years old. The company said this percentage is increasing. The cut in goods and services tax in 2025 has partly helped the company convert aspiring customers. Regarding the replacement cycle, the company said that while growth is in double digits, the actual replacement cycle has not yet kicked in.

 

PREMIUM PUSH

Royal Enfield has a market share exceeding 80% in motorcycles with engine capacity of over 250 cc. Eicher Motors continues to remain bullish on the prospects of premium motorcycles in India. "The demand (for premium motorcycles) is continuing. Inquiry levels are growing almost about 23% compared to the previous year and the month of April. There is no structural correction which is taking place in the demand," an executive said. The current inventory levels of Royal Enfield vehicles are at around 7-8 days.

 

The market size of premium motorcycles was almost 70,000 units in FY23. Today, it is at about 110,000 units per month, the company said. Of these, the company sells over 90,000 units. "So the entire premium motorcycle segment grows and Royal Enfield outgrew that. So that momentum is continuing as of now," the company said. 

 

COMMODITY IMPACT

Eicher Motors' cost of raw materials and components consumed surged almost 19% on-year, but fell marginally on-quarter to INR 31.92 billion. This was the slowest on-year growth in its input costs in the last three quarters, despite the surge in commodity costs in recent months. "We've been able to largely mitigate the margin impact as far as Q4 is concerned," the company said. 

 

"As far as the commodity is concerned, yes, there is a huge problem... it is almost about 3-3.5% on the material cost level impact," the company said. The company hiked prices by 70 basis points in January. Eicher Motors also focused on value engineering and cost-reduction exercises to offset price pressure. 

 

Friday, Eicher Motors shares closed 1.3% higher at INR 6,981.50 on the National Stock Exchange.   END

 

Edited by Saji George Titus

 

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