Royal enfield - intelligent management will not talk about EV… EV is not their strength and it is not aspirational product today. It is like killing their existing line of products… Just they have to keep quiet and sell as much as possible aspirational bikes… No consumers of RE worried about fuel cost or petrol cost - they want the performance. Achieving such performance in EV is not overall EV industry objective and it is aspirational one by too much top creamy layer of people to have RE kind of bikes in EV… If royal enfield focus anything on EV publicly, it will effect their sales… so not good idea to even talk about EV… It is like Petrol pump station owners talking about having EV charging points
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EV Comments from the Conference Call today for Q1FY22 --12th Aug’21 
EV Side --We operate in Mid-size motorcycle mkt , we are looking at 5/7 yrs long term for this. We are doing this for 3 yrs to look at the EV from scratch , lot of teams working on it. We are extremely delibrate about it ,Its not the no. of launches which is imp. its the quality & precision of the motorcycle to be able to penetrate the mkt & take mkt share. we are working on product strategy / mkt plan. it will be few yrs before you see anything from us.Its not the right time to make a big entry in the mkt as the market, The mkt is not yet ready in India for sure in the price/value equation, currently its way off, an equivalent EV is probably double the price if you were to sell with equivalent margin compared to a petrol bike , so this is not the right time as it doesnt make sense for the consumers with all the benefits and other things. We will probably time it right so that we dont have to hopefully loose too much money. We are extremely bullish on our long term strategy.
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Seeing positive reviews on the new classic 350. It seems Eicher is undercutting the pricing to win on the market share front
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Anyone tracking Eicher? Eicher seems well placed among the two wheelers and in the CV space.
Report on q3 FY22 by SMIFS: -
Q3 fy22 SMIFS.pdf (329.1 KB)
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Good traction continues. Eicher has reached pre-covid levels with OPM hovering at 24% in last 2 qtrs.
As per screener: -
Last 10 yrs median PE is 42.1
eps CAGR 2010 to 2019 (until covid) was approx. 34%
Update from IDBI Capital: -
IDBI_Capital_Eicher_Motors_Q1FY23_Result_Update.pdf (1002.3 KB)
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Vahaan site (https://vahan.parivahan.gov.in/vahan4dashboard/) not displaying registration number of Eicher correctly; for the entire 2023 it shows only 14! Month-wise data also incorrect!
Despite both HD440X and Bajaj Triumph Speed 400 getting launched in 1st week of July itself, it did not manage to dent the appeal of RE bikes. Below is the extract of each of them for July month; Eicher; Bajaj and Hero respectively. HD440X deliveries are supposed to start from Oct 2023 (3+ months from now); while Bajaj Triumph bikes expected deliveries start from July end itself. Will people wait for the reviews from actual riders? coz the YoY growth in RE is really surprising; I was surely expecting a drop in July
Delivery has not commenced for hero. It will start in October.
Aren’t the YoYs inflated because the comp period does not include Hunter 350? It was launched in Aug 2022. YoY growth will start moderating once we lap the Hunter launch next month.
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Quarterly results came post market today at 5.21 pm…
On 1st glance, it is a very good set of numbers (almost IT co like…i.e good growth Y on Y and decent Q on Q)…
Records highest ever quarterly Revenue, EBITDA and Profit after Tax
● Continues stellar show, with best ever performance for the fourth consecutive quarter
The key things to look forward to will be RE Sales in coming monthly sales and that will charter the course ahead
Bites from the whose who, in Eicher, Lal et al
Discl : invested/biased
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I think a lot of people make the mistake of looking at simply a spec sheet (Speed 400) is much more powerful bike compared to the classic 350. However, they are two very different bikes. RE has almost a cult following and it has never been because they are giving the fastest, most powerful bikes. It is the entire package which seems to make it attractive for a certain (rather large) set of riders. I was in Leh/Ladkah recently and drove a bike after more than a decade for 2 days. Every single rental on hire had only RE’s. You would be forgiven for thinking that RE is the only bike manufacturer in the world. You could see a few tourists who had bought their own bikes and some were not RE but that was about it. Would that huge market disappear because of Bajaj or Hero. I doubt although it could help in expanding the premium market and which is all the better. Also, I am looking at RE exports because they are making a nice niche globally. Read some of the external biking magazine reviews and most of them are fairly positive. All in all - I think a long road ahead for RE.
Disclaimer - Invested since a very long time and biased. I do not ride a RE between. I would much prefer a Ducati 
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Ok, I understand now, looking at the same trend in August as in July.
Was confusing bookings with Sales… so sales will be counted only when deliveries are going to happen which as you rightly pointed out will happen in October for Hero, but the declining trend for Bajaj(-31%) is worrisome given that deliveries may have already started Triumph Speed 400 Batch Out: Triumph Motorcycles rolls out first Speed 400 batch from Bajaj's Chakan plant: Deliveries to begin soon - Times of India
FY23 YTD July Sales were 24% higher than FY22 YTD July but FY23 YTD Aug sales are 21% higher! So growth continues but some impact due to potential postponement by potential Bajaj Triump/ Hero HD X440 buyers 
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50% higher pat on account of strong margin expansion
https://www.bseindia.com/xml-data/corpfiling/AttachLive/d6362e40-9303-4d59-adfd-9ec8103a8c9d.pdf
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Monthly sales volume for December 2023 are 7% down YoY ( 63k vs 68k ) and 21% QoQ (63k vs 80k). The yearly downtrend is a seasonal effect, last year Dec sales were also down 7% YoY. However the sharp QoQ correction is what bothers me a little. All other major 2 W OEMs have reported YoY increase in sales for Dec 23.
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The sharp QoQ drop is concerning, and easiest assumption is to conclude that TRIUMPH and HARLEY gaining good traction. But having said that I feel Royal enfield brand is quite formidable.
The way the company builds a community of riders and cultivates feel good factor surrounding it.
Their impressive sales figures and reviews in European and east Asian markets where triumph already exist shows that they thrive in markets along with other premium player.
One common theme among all royal Enfield reviews (including foreign) is that it may not be chart topping in terms of spec sheet but nevertheless it brings smile to the rider. Thats a real moat which is not easy to replicate.
Royal Enfield captured the Indian market when their bikes were technically far inferior only because of the brand pull . With the introduction of 650cc engine in 2018,J series engines in 2020 and sherpa engine in 2024 that’s no longer the case. Thay have power of brand and technical perfection coming together.
So I think days ahead are going to be sweeter. As the CEO mentions market share may fall below 90%, but the premium segment as a whole will grow and RE will be at least 75% leader in the space.
Forms 20% of my portfolio.Holding since 2020
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@laxman_sreekumar just like you, Eicher motor has one of the highest allocations in my PF.
- If some one is purchasing a motorcycle above 350cc, they are like an iPhone, if you don’t buy it, people ask, why not royal enfield when you were spending so much? The loyalty they command is amazing
- The new engines are likely to fork even more variants bringing economies of scale.
- They are slowly building muscles outside India
- Their apparel and accessory business if amazing
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