Eicher Motors hits all-time high in weak market; what's driving 2W stock?

Eicher Motors share price; the parent company of Royal Enfield, a global manufacturer of middleweight motorcycles, hit a new high of ₹6,109 in intra-day trade on Tuesday.

Share price of Eicher Motors today

 

Shares of Eicher Motors hit an all-time high of ₹6,109, as they rallied 2 per cent on the BSE in Tuesday’s intra-day trade in an otherwise weak market on strong business outlook. Eicher Motors is the parent company of Royal Enfield, a global manufacturer of middleweight motorcycles. 

 

The stock surpassed its previous high of ₹6,109 touched on August 18, 2025. In comparison, the BSE Sensex was down 0.75 per cent at 81,025 at 10:34 AM.

 

In the past one month, Eicher Motors has outperformed the market by surging 13 per cent, as against 0.17 per cent rise in the BSE Sensex. Thus far in the calendar year 2025, the stock has soared 24 per cent, as compared to 3.2 per cent gain in the benchmark index.  READ STOCK MARKET LIVE UPDATES

 

What's driving Eicher Motors stock price?

 

According to ICRA, the domestic 2W segment is expected to register a 6-9 per cent year-on-year (Y-o-Y) volume growth supported by steady replacement demand, healthy rural incomes aided by a normal monsoon and a possible reduction in GST rates which could provide an additional boost.

 

The industry outlook for FY2026 remains positive, aided by favourable demand drivers and an anticipated GST cut could provide additional stimulus to accelerate growth, ICRA stated.

 

In July 2025, domestic wholesale volumes grew by 9 per cent Y-o-Y to ~1.5 million units, however retail volumes contracted by 6.5 per cent Y-o-Y as tepid urban demand and heavy rainfall affecting rural footfalls. ICRA expects the retail demand to improve significantly during the upcoming festive season.

 

Brokerages view on Eicher Motors 

 

ICICI Securities said they remain positive on Eicher Motors with a BUY rating on the stock and target price of ₹6,600. Eicher Motors via its Royal Enfield franchise is well positioned to benefit from rising premiumization trends, favourable income tax changes boosting urban sentiment, and a healthy rural market. With volume leadership, strong brand affinity & feature loaded products, Eicher Motors is expected to outperform the broader 2W industry in FY26E. Royal Enfield’s aggressive product pipeline and growing global footprint support a strong growth outlook, the brokerage firm said.

 

Meanwhile, Geojit Investments reiterated its 'BUY' rating on the stock, with a revised target price of ₹6,342 based on the sum-of-the-parts (SOTP) valuation.

 

Looking ahead, Eicher Motors is well placed to capitalise on rising premiumisation trends and sustained rural demand. Its strategy to broaden customer base, particularly by targeting a younger demographic, is gaining traction and is expected to further fuel its growth trajectory. Additionally, continued momentum in the export market, supported by robust demand and expansion initiatives, bodes well for its future performance. With a strong pipeline of upcoming launches and continued progress on its EV roadmap through the “Flying Flea” brand, the company is poised to maintain its growth momentum, the brokerage firm said in its Q1 result update.