Shares of Eicher Motors opened 2% higher on September 4, extending gains from the previous session on better-than-expected sales of the flagship Royal Enfield motorcycle range in August.
Royal Enfield motorcycle sales increased 11% year-on-year to 77,583 units in August. Sales were also much higher than Nomura’s estimate of 75,000 units. The brokerage has indicated that a spike in sales can be helped by channel filling.
Motorcycle exports also increased 13% year-on-year to 8,090 units from 7,220 units in the corresponding month of fiscal 2023. As of 9:19 a.m. Eicher Motors shares were trading up 1.31% at Rs 3,445 on the National Stock Exchange. Shares also rose 2% to Rs 3,400.40 on September 1 after the major carmaker announced auto sales in August rose 29.4 percent year-on-year. The company’s core truck and bus segment recorded 27.5% year-on-year growth, after selling 6,239 vehicles in August. The company also announced the launch of the Royal Enfiled Bullet 350 with the base model priced at Rs 1.73 lakh on September 1. Nomura believes the Bullet 350 is priced closer to the Classic 350 variant, which may affect its numbers. However, the brokerage firm estimates monthly sales of this new model will be between 13,000 and 15,000 units.
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