Eicher Motors falls over 1% after July sales missed estimates

Eicher Motors Limited shares declined more than 1 percent to Rs 3,390 at 9:20 am on August 2  after the company’s 2023 July sales missed analyst estimates.

Eicher Motors’ July sales rose 32 percent year-on-year to 73,117 units, according to the company filing. Brokerage firm Nomura had estimated a sale of 74,000 units for the month.

Follow our market blog for all the live action

Sales of vehicles in the up to 350cc segment rose 39 percent year-on-year to 64,398 units.

The automobile major’s exports declined 22 percent at 7,055 units as compared with 9,026 units in the same period last year.  Domestic sales, however, jumped 42 percent to 66,062 units as compared with 46,529 units in the corresponding month of the last fiscal.

The VECV segment sales, a joint venture of the Volvo Group and Eicher Motors stood at 5,877 units, down 2 percent from 5,982 units posted in the same month last year. Furthermore, Nomura had estimated sales of 6,400 units in July 2023.

Of late, the company has been facing stiff competition from competitors. The premium bike market has heated up with new launches threatening to eat into Royal Enfield’s 90 percent market share. Consequently, in early July, the company’s market cap eroded by Rs 11,300 crore.

The Indian multinational automobile company will announce its first quarter results on August 3.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.