Eicher Motors Management Guidance Tracker

Management confirmed a price increase of about 1.5% on certain models in the domestic market during Q2 FY24.

Management expects export wholesale volumes to turn positive in about 2-3 quarters as macroeconomic conditions improve and new products (Himalayan, Shotgun) reach international markets.

With pro-growth budget and infrastructure investments, VECV anticipates industry recovery in the second half.

Select Royal Enfield models saw a price hike in April to offset OBD2B costs.

Blended price increase of about 0.5% taken in January to offset commodity inflation.

Royal Enfield has a pipeline of 13-14 new products, with launches spaced out over the medium term (3-4 years).

Management expects the Indian mid-size (250-750cc) motorcycle market to grow from ~1M to 1.5M units in the next few years.

The all-new Himalayan 452, based on the Sherpa engine, is expected to significantly boost volumes and brand stature globally, with potential to disrupt the adventure touring segment.

Management plans to launch new motorcycles on the Sherpa 450 platform and other platforms over time, but will focus on stabilizing existing products in the coming financial year.

Management anticipates the Indian middleweight segment to grow in double digits in FY25, with Royal Enfield positioned to outpace the market.

Management expects the mid-weight motorcycle segment to return to high single-digit to double-digit growth as consumer confusion settles and new products like Guerrilla and Classic drive demand.

VECV expects to maintain market share gains through dealer network expansion and new product introductions, with industry growth supported by government capex and festive demand.

Management plans continued market activation and product-level campaigns to sustain demand post-festive season.

Management will continue to invest in brand-building and market activation, though the lumpy launch-related expenses will moderate.

Management is bullish on festive demand, supported by new Hunter 350 colors, media campaigns, and dealer floor financing for ~575 dealers.

Management expects better growth in H2 due to infrastructure spending, GST impact, and replacement demand, with second half typically 55% of annual volume.

Management expects Q4 to maintain growth trajectory with positive inquiries, conversions, and bookings.

Current installed capacity is ~1.2 million units across both plants, with modular lines allowing further expansion as needed.

VECV will bid for STU e-bus tenders only if payment security and profitability are assured, having participated in the latest tender after resolution of payment concerns.

Royal Enfield will increase brand-building and marketing activation spends to drive awareness for Hunter, Classic, and other models.

Capital expenditure is expected to remain around 2-3% of revenue, with flexibility to invest more as product portfolio evolves.

VECV is on track to spend around INR 1,000 crore in CapEx for the full year, as announced at the beginning of the year.

Investment in EV manufacturing facility, product development, and new listings.

Current capacity is ~1.2 million units, operating at ~90% utilization. Future capacity will be added in modules, focusing on new products rather than heavy capex.

Greenfield factory in Madhya Pradesh for Volvo's 12-speed automated manual transmission, with most production exported to Asia and Oceania.

Brownfield expansion at Cheyyar with ₹958 crore investment over two years, targeting 2 million annual capacity by FY27-28.

VECV aims to reduce discounts and improve transaction prices rather than increase MRPs, supporting margin improvement.

Steel and aluminum impacted margins by ~50 bps, partially offset by value engineering (20 bps). Further impact expected in Q2, with mitigation through price increases and cost actions.

A new motorcycle on the Sherpa 450 platform will be launched soon, expanding the platform beyond the Himalayan.

VECV's new electric small commercial vehicle (2-3.5 ton) will be commercially launched from January 2025, following pilot deliveries.

Exciting updates and collaborations for the Classic model will be announced within a week, expected to boost volumes.

Deliveries of Eicher Pro 6355 LNG trucks have started, with ramp-up expected in coming quarters.

Debottlenecking and new module investment will increase capacity from 1.2 million to 1.35 million, with new capacity kicking in from Q1 FY27.

C6 electric motorcycle to be launched in the next quarter, with S6 following around EICMA time.

First electric motorcycle under new brand Flying Flea to launch in early 2026, with 200+ strong EV team and 28 patents filed.

Royal Enfield's electric motorcycle brand Flying Flea will hit the market in the first quarter of 2026, with initial capacity of 1.5 lakh units per annum at Vallam Vadagal plant.

Flying Flea showcased at EICMA; official launch planned as per timelines.