Eicher Motors expects 2-wheeler demand to increase
Eicher Motors Ltd, the maker of Royal Enfield motorcycles, expects the demand for two-wheeler vehicles to increase going ahead, as people would be wary of using public transport due to the coronavirus pandemic.
In his note to the shareholders in the company’s annual report for the year 2019-20, Managing Director Siddhartha Lal said that although the last few months have been challenging, as the lockdown gradually begins to ease out, the company is witnessing strong initial customer interest and confidence.
“Going forward, we do estimate an increased demand for personal transportation and two-wheelers as people would be wary of using public transport. This we believe will augur well for us and for the industry as a whole,” he said.
Lal said the Royal Enfield is “very well poised to expand and lead the middleweight motorcycling segment globally”. He added that the company’s international markets are beginning to show significant and sustainable growth trends on the back of the motorcycles they have recently introduced — the Himalayan and the 650 Twin.
He added that there is strong potential for further growth in these markets for Royal Enfield.
“We are committed to remain invested in these geographies and continue our efforts towards building a robust ecosystem of rides, events, and community so we can further mobilise more enthusiasts into experiencing Royal Enfield’s pure motorcycling way of life,” he said.
Noting that the company will have to adapt to what will be the new normal going forward, he said that at Eicher Motors, there is the experience of building resilient and profitable businesses with very strong business models that are well prepared to meet such extraneous challenges.
Both Royal Enfield and the joint venture with Sweden’s AB Volvo, VE Commercial Vehicles Ltd, have strong product pipelines and will continue to push forward with the company’s long-term strategic plans, Lal added.