Eicher Motors may underperform auto peers in the near term

Response to new model below expectations, higher prices may dent volumes

After gaining 11.5 per cent since the start of September, the Eicher Motors stock slipped a bit over the last couple of trading sessions after brokerage downgrades, lower than expected volume performance and higher valuations. The key concern is the slow offtake of its new launch--the 2021 Classic 350 motorcycle which was introduced on September 1.

Amit Mishra and Udaykiran Paluri of Antique Stock Broking, who downgraded the stock, say that their checks with the company’s dealers on customer response to the new model have been below expectations. The Classic 350 is by far the single largest volume driver for