I just wanted to understand from the participants in this thread who know the company and the management in and out, How do you see growth panning out going forward for each of the revenue segments mentioned below: 1) Royal Enfield Bikes 2) EV bike brand 3) Eicher Trucks 4) Eicher Buses 5) Volvo Tippers 6) Volvo Tractors (the 18 wheeler one) 7) Volvo buses
I would share my views here on each segment
- RE Bikes : Volumes in the domestic market might be supported by the aspirational and “manly” positioning of their bikes + the new bikes that have the modern and smart look to them which might appeal to the 18-25 y/o. Remains to be seen how growth pans out as they spread internationally in new markets and penetrate deeper in existing ones.
- EV bikes: No idea
- Eicher Trucks : The competitive scenario here might be a bit high, Bharatbenz trucks and tippers seem to be gaining traction too due to their lucrative offerings in terms of low Total cost of ownership, better performance (especially the torque on offer), attential to driver’s comfort , etc
- Eicher Buses : The recent intercity buses on offer at Prawas look good, but will they see the traction only time would tell
- Volvo tippers : Would love to know from the participants what makes a volvo tipper a better option than say a bharatbenz/tata/ proton EV/ etc. Is it the low TCO? or safety? What is the reason for a mine owner to go for a Volvo tipper for his drivers?
- Volvo Tractors: since these 18 wheeler trucks have to cover long distances and are supposed to the run in the wild (i.e. on open roads) safety and comfort of the driver should play an important role here, but since today the supply of drivers in the market the truck owners have no incentive to provide them with a safe and comfortable truck. Maybe eventually as truck drivers become more demanding the volumes for Volvo would improve , But why wouldn’t other brand be able to manufacture a safe, comfortable truck?
- Volvo Buses: This is the segment that I assume has the least competitive intensity considering the segment in which Volvo operates ( luxury intercity coaches) , Scania India the only major competitor has faced severe internal challenges which leaves Volvo all alone. With many more expressways and NH under construction maybe we could see increased acceptance of passenger movement through the roads and here the aspirational Indian middle class traveler would choose a safe and comfortable bus and the operators would have only one option, a Volvo.
Also a general macro view of the Indian passenger and goods movement industry , we are seeing increased demand for movement of people and goods and there seems to be supply constrains in other methods of transport (i.e. the aviation industry seeing delays in new plane deliveries, railways facing a bottlenecks due to limited track availability but maybe the DFC could improve the situation , the inland waterways have just begun and lets wait for their acceptance by the market) which might help with bus and truck volumes, but numbers > narrative.