Playing devil’s advocate :
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Brand loyalty : I used to think the same but recently I joined the r/indiabikes, the biggest Indian bikes reddit sub. Opinions on RE are mixed at best, so brand factor may not be as strong as we thought.
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New engines : No comments.
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Exports : India is the biggest growth market. A lot of overseas markets ( such as US) are pretty stable, i.e no growth in motorcycle market. This means RE has to dislodge incumbents to gain lead. Not sure how well it can do that. And even if it does, the TAM( guessing) would be smaller compared to India.
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Accessories : I doubt accessory business would do well if sales are not doing well, it’s called accessory for a reason after all.
Disc : Eicher is a small part of my portfolio, was looking to add more on corrections, but now I’m thinking maybe I should wait for the results. All said I agree with you guys that long term RE will likely out execute others.
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I am quite a regular follower of motorcycle landscape and have been holding Eicher since 26/11/2020. This is before the launch of the J series 350 cc engine, the new 450 CC engine, and after the launch of the 650 parallel twin.
All 3 engines have upped the game. Since that time Eicher has launched following
- Meteor 350, Classic 350, Hunter 350, Bullet 350 on J series 350CC engine
- Scarm 411 on old himalyan 411cc engine
- Super Meteor 650 on 650 parallel twins, along with face-lifted continental and interceptor
- Himalyan 450
Each of the above has received very good reviews from with some improvement areas.
Upcoming bikes
- 350 CC Bobber,
- Shotgun 650,
- Scram 450
Besides this, they have invested in an EV bike Spanish company with a Board seat. https://starkfuture.com/en-us-IN
Overall it looks like the only company with a focused direction.
Invested and hugely biased because of Siddhartha Lal.
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The new Himalayan 450 seems to have stellar reviews across the board. Is this category a meaningful volume generator for the company? Should Q4 see better volumes due to this launch?
RE super meteor 650 retails around 5 lakhs (on road). It sells around 1000 pieces per month. I don’t know how many other brands can convince these many people to spend such a huge sum (a sum at which you can get a decent car out and running on road) for a bike.Triumphs and harleys at around 8-10 lakh range barely sell 100 bikes per month. I strongly believe 650cc will take off in coming decade. In India next set of growth may come from migration of 350cc customers to 650cc or 450cc.Classic 650 which is right now in rumor stage will be a good inflection point for the change.
Also Latin american market and east asian market may be a good growth engine as they can give some respectable numbers.
Dominance in European and north American market helps in building a premiumness to the brand rather than bringing raw sales numbers.
One thing which baffles me why brand is not trying to enter China given it has huge appetite for premium products.
China is feature feature-conscious market or brand market. Raw specs are not great for Royal Enfield, nor is the brand pull in china.
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Good to see 650 cc segment growing .Its important to get good numbers in 650cc and 450cc because 350 segment now has cutthroat competition with all major manufacturers putting up a good show.
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@laxman_sreekumar these numbers will vary month to month. I think RE intentionally keeps shifting between motorcycles and between export and domestic. For each motorcycle, they figure out what the ideal waiting period is. They don’t want to make it too long that customers lose patience nor do they want to make it too short to maintain the perception of demand supply gap. We should look at quarters or yearly numbers only.
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please share the reserach report if available.
RE has been extremely successful in keeping competition at bay.
Triumph twins have been rounded off to 2500 per month
HD440 and Maverick to 1000 per month
and with Guerrilla 450 it will bring new users to RE fold as this big has character which is very different from all other RE bikes
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Very informative video on what is happening in the auto industry
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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.
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