Royal Enfield maker in the hunt for a magic bullet4 min read . Updated: 05 Dec 2018, 08:44 AM IST
A slump in Royal Enfield sales growth, increasing brand fatigue and competition from Jawa motorcycles and others are seen weighing on Eicher Motors shares and, in turn, its market capitalisation
Mumbai: Once the most preferred stock in the automobile sector, owing to its storied motorcycle brand Royal Enfield, Eicher Motors Ltd has lost about ₹ 17,900 crore in market capitalisation so far in 2018, according to data provided by Bloomberg. To explain the fall, analysts cite factors such as slowing sales growth off a high base for Royal Enfield, increasing brand fatigue for the classic British brand’s limited portfolio, reduced waiting periods owing to higher production capacity and increasing competition in the premium motorcycle category.