Price hike, weak two-wheeler demand cloud outlook for Eicher Motors

After posting growth of 22% in previous quarter, volumes have been lower

The slowdown in the two-wheeler sector on the back of higher product costs, increasing competition and margin pressures took a toll on the performance of Eicher Motors in the December quarter. After posting a growth of 22 per cent in the June 2018 quarter, it’s volumes have been on the downtrend, with year to date (YTD) volumes up only 5 per cent. 

It posted a volume decline of 6 per cent in the December quarter. Siddhartha Lal, managing director and chief executive officer (CEO), Eicher Motors indicated the second half of 2018 was challenging, with increased insurance requirements, rising raw material