Eicher Motors - strong innovative business, powerful brand.

Eicher Motors Business 

Eicher Motors Limited is the listed parent of Royal Enfield, the global leader in middleweight motorcycles. 

The world’s oldest motorcycle brand in continuous production, Royal Enfield has made its distinctive motorcycles since 1901. 

Royal Enfield operates in India, and over 60 countries around the world with modern development facilities in Leicestershire, UK and Chennai, India. 

In addition to motorcycles, Eicher has a joint venture with Sweden’s AB Volvo - Volvo Eicher Commercial Vehicles Limited (VECV) - has pioneered modernisation of commercial vehicles in India and other developing countries. 

Production facilities 

Royal Enfield makes its motorcycles in Chennai, Tamil Nadu for the world.

VECV has a complete range of trucks and buses from 4.9-55 tonnes, and its integrated manufacturing plant in Pithampur, Madhya Pradesh is the global hub for medium duty five- and eight-litre engines for Volvo Group.

Aspirational

Royal Enfield (RE) remains an aspirational purchase with undiminished brand equity (consistent >90% market share in >250 cc motorcycle segment). 
Post-Covid volume prints have been under pressure. This is due to

(i) short-term pressures on discretionary spends and 

(ii) supply side disruptions in its manufacturing and value chain belt on account of the pandemic. 

Nevertheless, order book remains healthy (~1.25 lakh units as of November), with supply de-bottlenecking holding the key to quicker volume uptick. 

The company has continued to innovate on the distribution front over the past year, with small format studio stores (total count at > 1,700) adding to regular full format stores domestically and the Make It Yours (MYI) app being a first of its kind digital initiative that is witnessing good customer response.

Awards

2015: Emerging Company of the year - The Economic Times 

2015: Best Company of the year - Business Standard Annual Awards 

2015:  Next Gen. Entrepreneur - Forbes India Leadership award ( to Siddartha Lal CEO of Eicher Motors)

2017: CEO of the year - Business Standard (to Siddartha Lal CEO of Eicher Motors)

Eicher Motors Stock - past 1 year 

Eicher Motors Stock - since 1999

(Disclaimer : This blog id for information purposes only. Stock market investing is a with risk investing including risk on capital invested. Please take a well considered decision)