Eicher Motors Q2 profit up 8.3% to ₹1,100 cr; eyes differentiated EV portfolio

Eicher Motors Limited (EML) has reported a net profit of ₹1,100 crore in the July-September quarter of FY2024-25, an increase of 8.3% compared to ₹1,016 crore during the same period last year. Eicher Motors' Q2 revenue stood at ₹4,263 crore compared to ₹4,115 crore in the corresponding quarter of FY24. EBITDA was ₹1,088 crore, almost flat from ₹1,087 crore in the year-ago period.

During Q2, Royal Enfield recorded sales of 2,25,317 motorcycles compared to 2,29,496 motorcycles sold during the same period in FY24. Eicher's JV VE Commercial Vehicles or VECV’s revenue was ₹5,538 crore in Q2 FY25, up 8% over the previous year’s revenue of ₹5,126 crore. EBITDA was ₹395 crore compared to ₹402 crore last year. VE Commercial Vehicles (VECV) recorded sales of 20,774 vehicles in Q2 FY25 over 19,551 vehicles last year.

Siddhartha Lal, managing director, Eicher Motors, says the company continued to sustain the momentum both at Royal Enfield and VECV. "At EICMA, earlier this month, we launched two motorcycles on our 650-Twin platform; the Bear 650, and the Classic 650. In addition to this, Royal Enfield marked its foray into electric mobility with a new EV brand -- the Flying Flea. Lal says under the Flying Flea, the company is going to have a portfolio of differentiated electric motorcycles for city+mobility."

On the commercial vehicle front, he says, VE Commercial Vehicles strengthened market shares in truck segments. "This is against the backdrop of lower industry volumes compared to Q2 last year.”

B. Govindarajan, CEO, Royal Enfield and wholetime director, EML says: "We made significant progress on expanding and strengthening our footprint outside India as we debuted the brand in Bangladesh with our new flagship store in Dhaka and a manufacturing and assembly unit in the country."

On VECV’s performance Vinod Aggarwal, MD and CEO -- VECV says the unit delivered its "highest ever" second-quarter sales during Q2 FY25 growing 6.2% over Q2 FY24 and attaining leadership in the Light and Medium Duty (LMD) segment during the quarter. "This growth was against a drop in CV industry volumes of 10.8% in the same period."

Royal Enfield forayed into the EV space in Q2 FY25 by announcing the new electric vehicle brand, Flying Flea at EICMA earlier this month. The debut featured two models: the Classic-styled Flying Flea C6 and the Scrambler-styled Flying Flea S6.

In the SAARC region, Royal Enfield started operations of its manufacturing unit (category 2) and flagship showroom in Bangladesh. The facility will engage in local production and assembly of four flagship models—Hunter 350, Meteor 350, Classic 350, and Bullet 350, specifically for the Bangladesh market.