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Every month companies have to report sales data to exchanges on 1st day
This is good news if Eicher is able to diversify itâs offerings. There are a lot of big players with multiple offerings in the middle weight motorcycle category and they would all love to have a share of the pie.
Eicher has to start focussing on making globally competitive motorcycles (by that I mean bikes that can stand up to say a Suzuki or a Kawasaki as far as quality & specs are concerned. )
Discl: Large holding
Hope the higher wait time wont give opportunity to other competitors
One has to be optimistic, competition always there, so this waiting is either due to better products or Better Value (Cheaper) for money⌠I hope RE 650 is another phase of growth for Eicher but PE rerating might nit happen this time, so return might be inline of EPS growth and PE remain around 30 +_5 now-onwardsâŚ
Disc: Invested since 2013
I have been going through every review of RE in Britain for a week now.
Interceptor 650 is a proper hit.
- It has connect with those who want to be looked at as proper bikers (aka the good old days were bikes where bikes and not electronic gadgets). I think this nostalgia and liking for the design carried bulletâs sales in India (Lindy Effect?). The same appears to be happening in Britain. There are reports where buyers consider this one better than the old Enfield and that the old can be chucked off for this one.
- The general impression of the quality from individual reviewers is that the quality matches the best. The welding is clean, the gear switch is so smooth, one woman compared it to automatic. Another said ânot driven a bike where the nuetral is so easy to findâ.
- Along with the ease of drive comes couple of other reviews in multiple places: It is a good beginner bike and âit is a bike which you just pick up on a sunday and go out and also a bike that you take to the highways. One bike for both your needsâ.
- Higher Average age of Brits helps too to get that nostalgic connect.
For other bikes
- Himalayan : Multiple owners mentioned a bigger engine would be good some time back. And it appears they are putting the 650 in the Himalayan late this year or early next year.
- Not much about continental GT compared to interceptor. But many like the ride position compared to interceptor etc etc. At least in britain.
- They are making a big push trying to project the bike as very customizeable (which also boosts sales). Example: âI can buy this one for half the price of Triumph and customize the hell out of it and still save moneyâ.
- There is no other brand that gives this much value for the price in the British market. They have hit that segment perfectly it appears. âNo fancy stuff, 100% bike.â
One concern I came across was service cost is higher/mile compared to triumph according to one reviewer.
Wait times. I need to check if they are ramping up production/capacity.
Not invested. Very very tempting. This might turn out to be the first stock were I dig deeper into their financials and their plans etc. etc. Till now, it has all been about inputs from other folks in this forum.
Sorry for the multiple edits. Will proof read before posting next time.
âThe Royal Enfield CEO has said that the companyâs UK Technology Centre, one of the two R&D centres tasked with new product development, has rigged up an existing product with an electric powertrain and that he has âdriven itâ himself.â
This development is interesting to know!
In the last AGM, they had mentioned that they will be the followers in case of EVs. This will be a wait and watch for them. Good to know that the product development is on and in line with what they had said.
Interesting to see this entire interview and the energy, positivity and enthusiasm that Vinod Dasari is bringing in during this downturn.
What a wonderful way of keeping check on downturn! They used it as an opportunity to enhance customer experience. They gave customised bikes and also have reduced inventory levels to three weeks.
Another interesting point is that he quoted from internal processes is of strategic partnerships. It should happen if it is bringing in any of the 3Ts - Technology, Territory or Talent.
There was a concern that electric motors are silent and hence the electric version of RE bikes wouldnât have its highly-appreciated engine sound. But at the same time, the world is moving in the direction where manufacturers are deliberately adding sound to EVs to prevent accidents.
Due to the silence of EVs, it is studied that road accidents can increase affecting pedestrians, especially the blind. Below links provide enough information on the same.
RE can use this to its own advantage by adding its ICE DNAâs sound to their EVs, retaining the brand recall.
Discl: Among Top 5 holdings. Please do your own due diligence. Not a buy / sell recommendation. No transactions in last 30 days.
Q3 FY20
- Reported Steady performance
- Gained market share in the motorcycle segment & there is a expansion of its network.
- Some efforts were put into improving volumes but due to overall segment slow down it has not really come off
- Export volumes have improved which is led by new products such as the 650cc twins and Himalayan
It need to be observed if the co can pass on the entire rising cost across models. A sharp rise in precious metals prices used in the catalytic converters could put additional pressure.
The commercial vehicle business continues to be weak, But the volumes were better than the overall sectors volumes (fell 37%) so it gained market share.
Management view on COVID and beyond WORTH WATCHING
Excellent views. We as investors need to know of this ground reality. No excel sheet and calculators can tell us this.
Hey peanut
Do you have monthly sales data Febâ20 onwards for Eicher? If so, could you please post it here?
Cheers
@rjkulkarni Eicher posts it on their webpage and probably reports it to BSE too. As expected the sales for the month of April are negligible (85 CV and 91 RE).
You may refer the link below .
http://www.eicher.in/monthly-sales-number
HDFC Securities update on Two wheelers sector
I am not favoring Reduce recommendation for eicher. as it is premier segment player, having pricing power and aspirational brand. Like giving reduce to Apple in mobile phones. times are not good. But in 2 years time, there will be big turn around. also, any aspirational car buyer postponing and going for a bike, it will be Royal enfield than other bikes⌠same for export markets, where value and style from Eicher might make a difference. let us see how the report outcome turn out in reality.