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Eicher Reports 33% Growth In Sales, Focus Remains on New Dealerships & International Markets

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Royal Enfield, the maker of Bullet’s reported a 33% growth in Sales for the month of October, 2016.
The company sold 59,127 units against 44,522 units during the same month last year – a growth of 32.8%. Royal Enfield Exports increased almost two fold from 384 units to 748 units while its Domestic Sales witnessed a growth of 32%.
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  • > 350cc witnessed very minimal growth at 5.8% while the YTD growth stood at 28.8% – the Himalayan falls under this category since its a 411cc bike. 3,939 units sold in this segment also happens to be the lowest of the year since the company launched Himalayan to strengthen its premium position further. Surprisingly, the company also released its Q2 financials just last week and confirmed that as part of its thrust in international markets, Himalayan was showcased at Gaikindo Indonesia International auto show in August 2016.
  • Witnessing a 6 month low sales proves that the Himalayan has not caught the wave with the younger generation yet or else why will the company which has a long waiting period and unending demand for its products in India decide to expand the sales of its latest launch to foreign markets?
  • Exports were down to 748 units – third lowest for the year stacking up behind 739 in May and 744 in June.

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Commenting on Royal Enfield’s performance in Q2, Siddhartha said,

Royal Enfield has maintained its strong volume growth in the second quarter of FY 2016-17 and we continue to take more orders than our monthly supply. In addition to India, we also launched the Himalayan in Nepal this September, amongst a very encouraging response. We continue to expand our footprint in India with 605 dealerships now open across the country.

Eicher Motors Q2 financials looked as follows:

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Eicher confirmed that the company’s project on capacity and product development are progressing as per plans and it aims to commercial production at its third plant in Vallam Vadagal, Tamil Nadu by Q2 2017-18.
Its technical centre in UK is in advanced stages of development and should be operational by end of 2016-17 along with the Chennai technical centre that is planned to be operational by end 2017-18.
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