Lower BSVI impact, market share gains to help Eicher Motors

Brokerages expect a gradual recovery in volumes in the coming months

The Eicher Motors stock is up 39 per cent since its September lows on a better than expected festival season, smoother transition to BSVI and market share gains for its commercial vehicle joint venture, Volvo Eicher Commercial Vehicles (VECV). Strategic initiatives undertaken by the company to tap under penetrated markets, and improve distribution and product quality will also help enhance volumes. After multiple quarters of volume disappointment including the July-September period where the company sold 21 per cent fewer motorcycles as compared to year ago, retail sales especially in the festive season beat expectations recording a double digit growth. 

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