Recent trading sessions have witnessed a nearly 7% plunge in Eicher Motors $EICHERMOT.NS shares—the steepest one-day drop since July 2023. The decline is largely driven by aggressive investments in new models by Royal Enfield, the motorcycle manufacturer under the Eicher umbrella, which have significantly affected the company's profitability. Despite record sales figures in the motorcycle segment, rising expenditures, especially during key festive periods like Diwali and Christmas, have put considerable pressure on financial performance.
On the Indian stock exchange, shares of Bajaj Auto $BAJAJHIND.NS surged by more than 4% at the start of Wednesday’s trading session. This robust performance is attributed to sustained domestic demand and promising export prospects, making the company an attractive investment opportunity.
In recent years, India's automobile industry has faced a series of economic challenges. Sluggish economic growth and high fuel prices have become obstacles to stable sales volume increases. However, the festive season in the last quarter brought relief to India's major automakers — $TATAMOTORS.NS, $MARUTI.NS, and $BAJAJ-AUTO.NS.
