Eicher Motors hits all-time high on 25% jump in Royal Enfield sales

Shares of Eicher Motors surged to an all-time high of Rs 5,308.30 during Thursday's session, climbing over 8 per cent on the back of stellar December sales figures for its Royal Enfield brand. The stock closed with gains of 8.66 per cent, reflecting investor optimism.

December sales fuel the rally

Eicher Motors reported a strong performance in December 2024, with Royal Enfield sales increasing 25 per cent year-on-year (YoY) to 79,466 units, compared to 63,887 units in December 2023. Key highlights include:

• Motorcycles up to 350cc: Sales grew 25 per cent YoY to 69,476 units.

• Motorcycles above 350cc: Sales also rose by 25 per cent YoY to 9,990 units.

• Exports: Achieved an impressive 90 per cent YoY growth, with 11,575 units shipped globally.

Nine-month performance remains strong

For the first nine months of FY25, Royal Enfield's total sales volumes increased 6 per cent YoY, reaching 7,27,077 units, compared to 6,85,059 units during the same period in FY24. The consistent growth highlights the brand’s growing traction both in domestic and international markets.

Expanding international footprint

The exceptional growth in exports underscores Royal Enfield's expanding presence globally. Key factors driving the growth include:

• Launch of new category-defining motorcycles like the Classic 650 and Bear 650.

• Continued demand for premium motorcycles in Asia-Pacific and Europe.

• Strengthened distribution network, including the establishment of a new assembly plant in Thailand.

Management's outlook

The management expressed optimism about sustaining the growth momentum, stating that the company is committed to expanding its footprint and innovating in the premium motorcycle segment. It also hinted at future growth prospects, supported by upcoming launches and strategic investments.

Stock outlook

Eicher Motors’ robust sales performance and strategic growth initiatives have positioned it as a strong player in the auto sector. Analysts remain bullish on the stock, citing its growth potential, particularly in the premium and export segments. Investors are advised to monitor upcoming launches and financial updates for further cues.