EICHERMOT

Adds analysts comments, updates shares

Sept 4 (Reuters) - India's auto stocks .NIFTYAUTO jumped as much as 3.7% to the highest level in nearly 11 months on Thursday after the government slashed consumption taxes, with analysts predicting a demand boost for the sector.

Auto shares were last up 1.9% to lead sectoral gains on the benchmark Nifty 50 .NSEI index, which was trading 0.6% higher.

Mahindra & Mahindra MAHM.NS and Eicher Motors EICH.NS both notched record highs and led gains on the auto index. Mahindra, up 6%, was the top gainer on the Nifty.

Late on Wednesday, the Goods and Services Tax Council approved lower taxes on hundreds of consumer items ranging from soaps to small cars to spur domestic demand in the face of steep U.S. tariffs.

The GST on small cars, motorcycles, buses, trucks and ambulances has been reduced to 18% from 28%.

"The total tax on all auto categories will decrease, benefiting all players," boosting overall demand, analysts Basudeb Banerjee and Rishi Kapadia at CLSA said in a note.

The effective tax on large-engine capacity cars and SUVs was lowered to 40%, as an additional levy was dropped.

Jefferies analysts said this is a "surprise win" for Mahindra as majority of its portfolio includes SUVs.

Peer Eicher is a key beneficiary from the tax cuts on tractors, which comprise 80% of its portfolio, the analysts said.

(Reporting by Manvi Pant; Editing by Sonia Cheema and Mrigank Dhaniwala)

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Sept 1 (Reuters) - Eicher Motors Ltd EICH.NS:

• EICHER MOTORS - ROYAL ENFIELD AUG SALES GREW 55% Y/Y

• EICHER MOTORS LTD - ROYAL ENFIELD REPORTS 1,14,002 MOTORCYCLE SALES IN AUGUST

Source text: ID:nNSE34NMhh

Further company coverage: EICH.NS

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Adds broader context, stock market reaction paragraph 1-2, 4-7

By Nikunj Ohri and Aftab Ahmed

NEW DELHI, Aug 18 (Reuters) - India aims to slash taxes on small cars and insurance premiums as part of a sweeping reform of its goods and services tax (GST), a government source said on Monday, as Prime Minister Narendra Modi's plan sparked a rally in stock markets.

Modi's administration revealed plans of the biggest tax overhaul since 2017 over the weekend, and consumer, auto and insurance companies are likely to emerge as the biggest winners when product prices drop from October, once the reform is approved.

The federal government has suggested lowering GST on small petrol and diesel cars to 18% from the current 28%, said the source who is directly involved in the matter. The GST on health and life insurance premiums may also be lowered to 5% or even zero from 18% currently, the same source said.

Indian markets climbed on Monday, with the benchmark Nifty index trading 1.3% higher, on course for its best day in three months. Auto stocks also rallied.

The tax cuts "would enhance affordability, boost consumption, and make essential and aspirational goods more accessible to a wider population," Mahesh Nandurkar, equity analyst at Jefferies said in a note.

"Maruti (Suzuki) should be the biggest beneficiary of this potential cut," he added.

Modi's deep tax cuts will strain government revenues but are winning praise from businesses and political pundits who say they will bolster his image in an ongoing trade fight with Washington.

Federal government officials over the weekend said New Delhi has proposed only two rates of taxation -- 5% and 18% -- under the revamped structure. The highest 28% slab will be abolished.

The new proposal however will impose a 40% tax on 5-7 "sin-goods" like tobacco products and luxury items.

The announcement will not be effective until the GST Council, which is chaired by the federal finance minister and has representatives from all states, gives a nod. A meeting is expected by October.

India's finance ministry did not reply to an e-mail seeking comment.

SHARES ZOOM

Sales of small cars, defined as those having engine capacity below 1200cc for petrol vehicles and 1500cc for diesel and not exceeding 4 metres in length, have slowed over the last few years as buyers switched to bigger, feature-rich SUVs.

Small cars made up a third of the 4.3 million passenger vehicles sold in the world's third-largest automobile market last fiscal year, down from nearly 50% pre-COVID, industry data showed.

The tax cut will be a big win for Maruti MRTI.NS, whose market share has plunged to about 40% from over 50% in the last five years as sales of its small cars such as Alto, Dzire and Wagon-R dropped.

The segment makes up half of all cars sold by Maruti - majority-owned by Japan's Suzuki Motor 7269.T. Carmakers Hyundai Motor India HYUN.NS and Tata Motors TAMO.NS also stand to gain.

Cars with higher engine capacity that currently attract 28% GST and an additional levy of up to 22% - resulting in total taxes of about 50% - may come under a new special rate of 40%, the source said.

The government source added that details are being firmed up to consider if any extra levies should be imposed over the 40% to keep the overall tax incidence for big cars the same at 43%-50%.

On the other hand insurance penetration in India continues to remain low, at 3.8% of GDP, in 2024, according to research firm Swiss Re Institute. The companies believe the lowering of GST will help boost sales of insurance products.

Shares of automakers such as Maruti, Mahindra & Mahindra MAHM.NS, Hero MotoCorp HROM.NS, Bajaj Auto BAJA.NS and Eicher Motors EICH.NS jumped 2%-8% in morning trade. Shares of insurance companies such as ICICI Prudential ICIR.NS, SBI Life SBIL.NS, and LIC LIFI.NS jumped 2%-4%.

(Reporting by Nikunj Ohri; Editing by Aditya Kalra and Raju Gopalakrishnan)

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Aug 7 (Reuters) - India's upcoming festive season is expected to lift near-term sentiment among auto dealers, but U.S. tariffs could dent consumer confidence, prompting higher household savings and weighing on discretionary spending, including vehicles, the Federation of Automobile Dealers Association (FADA) said on Thursday.

Vehicle dealers expect major festivals, including Rakhi, Janmashtami, Independence Day and Ganesh Chaturthi, along with targeted promotional schemes and healthy stock levels to drive sales.

However, the anticipated wealth erosion from fresh tariffs by the U.S. could erode consumer confidence, trigger a precautionary rise in household savings and exert pressure on discretionary spending, including on vehicles, FADA said.

(Reporting by Chandini Monnappa in Bengaluru; Editing by Sonia Cheema)

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Aug 1 (Reuters) - Eicher Motors Ltd EICH.NS:

• JULY TOTAL MOTORCYCLE SALES AT 88,045 UNITS

Source text: ID:nBSEZbLZm

Further company coverage: EICH.NS

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July 31 (Reuters) - Eicher Motors Ltd EICH.NS:

• EICHER MOTORS Q1 CONSOL NET PROFIT 12.05 BILLION RUPEES; IBES EST. 11.17 BILLION RUPEES

• EICHER MOTORS Q1 CONSOL TOTAL REVENUE FROM OPERATIONS 50.42 BILLION RUPEES; IBES EST. 49.35 BILLION RUPEES

Source text: [ID:]

Further company coverage: EICH.NS

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July 1 (Reuters) - Eicher Motors Ltd EICH.NS:

• JUNE TOTAL MOTORCYCLE SALES AT 89,540 UNITS

Source text: ID:nnAZN42E8CW

Further company coverage: EICH.NS

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May 14 (Reuters) - India's Eicher Motors, EICH.NS, maker of Royal Enfield motorcycles, beat fourth-quarter profit estimates on Wednesday, helped by strong demand for its higher-priced motorcycles along with elevated exports.

The company's net profit came in at 13.62 billion rupees ($159.75 million) in the three months ended March 31, compared to 12 analysts' average estimate of 12.68 billion rupees, as per data compiled by LSEG.

($1 = 85.2590 Indian rupees)

(Reporting by Meenakshi Maidas in Bengaluru; Editing by Mrigank Dhaniwala)

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May 1 (Reuters) - Eicher Motors Ltd EICH.NS:

• EICHER MOTORS LTD - VECV REPORTS TOTAL SALES VOLUME OF 6,846 UNITS FOR APRIL

Further company coverage: EICH.NS

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April 17 (Reuters) - Eicher Motors Ltd EICH.NS:

• ROYAL ENFIELD LAUNCHES NEW CLASSIC 350 IN NEPAL

Source text: ID:nBSE8frYF

Further company coverage: EICH.NS

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April 1 (Reuters) - Eicher Motors Ltd EICH.NS:

• MARCH TOTAL VECV SALES 12,094 UNITS

Source text: ID:nBSE9shnP8

Further company coverage: EICH.NS

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March 13 (Reuters) - Ashok Leyland Ltd ASOK.NS:

• INDIA'S FEB 2-WHEELER SALES 13,84,605 UNITS - INDUSTRY BODY

• INDIA'S FEB 3-WHEELER SALES 57,788 UNITS - INDUSTRY BODY

• INDIA'S FEB TOTAL DOMESTIC PASSENGER VEHICLE SALES 3,77,689 UNITS - INDUSTRY BODY

• INDIA AUTO INDUSTRY BODY: UPCOMING FESTIVITIES OF HOLI, UGADI IN MARCH LIKELY TO CONTINUE TO DRIVE DEMAND

Further company coverage: ASOK.NS

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Feb 11 (Reuters) - Shares of Eicher Motors EICH.NS dropped nearly 7% on Tuesday as the Royal Enfield motorcycle maker's heavy spending on new launches hurt profit margins, with analysts expecting the company's focus on growth to keep the pressure on profitability.

The stock was set for its biggest one-day decline since July 2023 and was the biggest drag on auto stocks .NIFTYAUTO. At least six of the 34 brokerages covering the company lowered their rating on the stock, according to LSEG data.

Eicher's core profit margins missed analysts' expectations on Monday due to higher sales of lower-margin motorcycles such as the 'Meteor 350', heavy spending on new models like the e-bike "Flying Flea", and increased costs, including on promotions in a quarter that included the major Diwali and Christmas festivals.

Elara Securities analyst Jay Kale said though vehicle sales hit an all-time high in the quarter, with growth beating those of rivals, the company's gross profit per vehicle was at a six-quarter low. Kale rates the stock "sell".

Morgan Stanley analyst Binay Singh, who rates the stock "underweight", doesn't expect margins to grow soon.

"Growth over margins is the right strategy, in our view. But with the stock pricing in high growth and high margins, achieving both will be tough."

Eicher's stock has outperformed those of its key rivals, Bajaj Auto BAJA.NS and TVS Motor TVSM.NS, over the past year. Its price-to-forward earnings ratio of 29.3 is sandwiched between TVS's 38 and Bajaj's 26.

However, while six analysts cut their price targets on Eicher's stock, at least 17, or half of all brokerages, raised their targets, factoring in higher core profit from the company's commercial vehicles joint venture with Volvo.

Analysts' median 12-month target is now 5,409.50 rupees on the stock, implying a 6% upside to the current price of about 5,102 rupees, per LSEG data.

Their average rating is "hold" on Eicher, while they rate both Bajaj and TVS "buy".

(Reporting by Manvi Pant, Additional reporting by Meenakshi Maidas; Editing by Savio D'Souza)

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Feb 10 (Reuters) - Eicher Motors Ltd EICH.NS:

• EICHER MOTORS LIMITED ANNOUNCES BOARD CHANGES

• SIDDHARTHA LAL APPOINTED AS THE EXECUTIVE CHAIRMAN OF THE COMPANY’S BOARD

• VINOD AGGARWAL APPOINTED AS THE VICE CHAIRMAN OF EICHER MOTORS LIMITED

• B. GOVINDARAJAN APPOINTED AS THE MANAGING DIRECTOR OF EICHER MOTORS LIMITED

Source text: [ID:]

Further company coverage: EICH.NS

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Feb 6 (Reuters) - Ashok Leyland Ltd ASOK.NS:

• INDIA'S FADA: OVERALL AUTO RETAIL GREW BY 6.6% YOY IN JAN

• INDIA'S FADA: PERSISTENT CASH-FLOW CONSTRAINTS, SUBDUED INDUSTRIAL DEMAND COULD CAP UPSIDE POTENTIAL

• INDIA'S FADA: SUPPORTIVE POLICIES, POST-BUDGET STIMULUS MAY HELP SUSTAIN SECTOR’S EARLY-YEAR GAINS

• INDIA'S FADA: ONGOING FESTIVE/WEDDING DEMAND, FRESH PRODUCT INTRODUCTIONS COULD SUSTAIN FOOTFALLS IN NEAR-TERM

• INDIA'S FADA: NEARLY HALF OF DEALERS ANTICIPATE GROWTH IN FEB,43% EXPECT SALES TO STAY FLAT,11% FORESEE DIP

• INDIA'S FADA: AUTO RETAIL SECTOR ENTERS FEBRUARY WITH CAUTIOUS OPTIMISM

Source text: [ID:]

Further company coverage: ASOK.NS

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Feb 4 (Reuters) - Eicher Motors Ltd EICH.NS:

• EICHER MOTORS LTD - GETS GST DEMAND ORDER TOTALS 88.8 MILLION RUPEES

Source text: ID:nBSE93mzjz

Further company coverage: EICH.NS

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** Eicher Motors EICH.NS gains as much as 3.4% to a record high of 5,575.5 rupees; last up ~1%

** Royal Enfield motorcycle maker's total sales jumps 20% y/y in January

** Rivals Hero MotoCorp HROM.NS, Bajaj Auto BAJA.NS log 2% and 7% rise in total sales in the period, respectively

** HROM, BAJA down 0.6% and 1.3%

** EICH, HROM, BAJA rated "buy" on avg - LSEG

** Eicher Motors among four stocks trading in green on 15-member Nifty auto index .NIFTYAUTO, which is down ~0.7%

** EICH up ~14% YTD

(Reporting by Manvi Pant in Bengaluru)

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Jan 14 (Reuters) -

• INDIA'S DEC TOTAL DOMESTIC PASSENGER VEHICLE SALES 3,14,934 UNITS - INDUSTRY BODY

• INDIA'S DEC 2-WHEELER SALES 11,05,565 UNITS - INDUSTRY BODY

• INDIA'S DEC 3-WHEELER SALES 52,733 UNITS - INDUSTRY BODY

• INDIA'S JAN-DEC TOTAL DOMESTIC PASSENGER VEHICLE SALES 42,74,793 UNITS - INDUSTRY BODY

• INDIA'S JAN-DEC 2-WHEELER SALES 1,95,43,093 UNITS - INDUSTRY BODY

• INDIA'S JAN-DEC 3-WHEELER SALES 7,28,670 UNITS - INDUSTRY BODY

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** Eicher Motors EICH.NS surges to record high of 5,228.15 rupees

** Stock last up 6.5%, set for best day since Dec 2023

** Royal Enfield motorcycle maker says sales jumped 25% YoY in Dec, while exports surged 90%

** Trading vol of 600,000-plus shares is 1.5x the 30 day avg

** Eicher shares have gained 30.2% in the last 12 months

** Auto index .NIFTYAUTO up ~2% on the day, with Maruti Suzuki MRTI.NS up 3.7%, adding to Weds gains on upbeat sales

(Reporting by Ananta Agarwal in Bengaluru)

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Jan 1 (Reuters) - Eicher Motors Ltd EICH.NS:

• EICHER MOTORS - DEC TOTAL VECV SALES 8,324 UNITS

Source text: [ID:]

Further company coverage: EICH.NS

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Dec 13 (Reuters) - Ashok Leyland Ltd ASOK.NS:

• INDIA'S NOV TOTAL DOMESTIC PASSENGER VEHICLE SALES 3,47,522 UNITS - INDUSTRY BODY

• INDIA'S NOV 2-WHEELER SALES 16,04,749 UNITS - INDUSTRY BODY

• INDIA'S NOV 3-WHEELER SALES 59,350 UNITS - INDUSTRY BODY

Source text: [ID:]

Further company coverage: ASOK.NS

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Dec 4 (Reuters) - Eicher Motors Ltd EICH.NS:

• INAUGURATION OF NEW ASSEMBLY PLANT IN THAILAND

• NEW ASSEMBLY PLANT HAS CAPACITY OF 30,000 UNITS PER YEAR

Source text: [ID:]

Further company coverage: EICH.NS

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Nov 15 (Reuters) - INDIA AUTO DEALERS' BODY FADA:

• NEARLY HIT OUR FORECASTED TARGET OF 4.3 MILLION VEHICLES DURING 42 DAYS FESTIVE PERIOD

• AUTO INDUSTRY YET TO FULLY BENEFIT FROM GOVERNMENT PUSH IN INFRASTRUCTURE SPENDING

• EXPECTS GOVERNMENT PUSH IN INFRASTRUCTURE SPENDING TO BOLSTER COMMERCIAL VEHICLE SALES

• COULD HAVE MET 4.5 MLN UNITS TARGET IF NOT FOR UNSEASONAL HEAVY RAINS IN SOUTH INDIA

• ANTICIPATES CAR STOCK LEVELS WILL REDUCE FURTHER FROM OCTOBER LEVELS

• URGES OEMS TO FOCUS ON LIQUIDATING 2024 STOCK AHEAD OF YEAR END

• LOOKING AHEAD, TRACTORS TO PERFORM BETTER, SUPPORTED BY GOOD RAINFALL, RISE IN MSP OF CROPS

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Adds details on strategy, updates share levels and background

By Nandan Mandayam and Indranil Sarkar

Nov 14 (Reuters) - India's Eicher Motors EICH.NS was on course for its best day since mid-2020, after the Royal Enfield motorcycle maker posted a quarterly profit beat, which analysts said indicated that the "toughest phase" of competition was over.

Eicher's stock rose more than 8.3% and was the top gainer on the Nifty auto index .NIFTYAUTO, which was up about 1%.

Jefferies said that the "toughest phase of the competition is behind" for Royal Enfield. Emkay, which also said competition was "largely behind", upgraded the stock three notches to "buy" from "sell".

Demand for its motorcycles has sustained even after the October-November festive season due to successful launches of some of new premium models, Royal Enfield CEO B Govindarajan told analysts on Wednesday.

The company, which gets most of its earnings from Royal Enfield, came under pressure last year after two-wheeler makers Hero MotoCorp HROM.NS and Bajaj Auto BAJA.NS launched premium Harley Davidson and Triumph models, directly challenging some of Royal Enfield's top sellers.

Govindarajan added that rural demand was rising and continued to outpace urban sales growth. Rural sales account for a third of Royal Enfield's sales and over half of the country's two-wheeler industry.

The positive commentary sent Hero's shares 1.5% higher. The company, which sells a major chunk of its motorcycles in rural India, is often viewed by investors as a gauge for rural sales.

It is due to report results later in the day.

Shares of other two-wheeler makers also traded marginally higher, with TVS Motor Company TVSM.NS rising 0.6% and Bajaj Auto up 0.1%.

Additionally, analysts raised Royal Enfield's volume growth estimates after Govindarajan said the company was focusing on volumes over margins and looking at "all the levers which are available for getting the growth."

Nomura termed Royal Enfield's focus on volume growth "a better trade-off" while upgrading the stock to "neutral" from "sell". It raised its fiscal 2025 volume growth target to 8.3% from 5%, while Ambit raised its estimate to 5.4% from 3.9%.

(Reporting by Nandan Mandayam and Indranil Sarkar in Bengaluru; Editing by Janane Venkatraman)

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Nov 13 (Reuters) - Eicher Motors Ltd EICH.NS:

• EICHER MOTORS Q2 CONSOL NET PROFIT 11 BILLION RUPEES; IBES EST. 10.66 BILLION RUPEES

• EICHER MOTORS Q2 CONSOL TOTAL REV FROM OPS 42.63 BLN RUPEES; IBES EST. 44.11 BLN RUPEES

Source text: [ID:]

Further company coverage: EICH.NS

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Nov 5 (Reuters) - Eicher Motors Ltd EICH.NS:

• INTRODUCES NEW EV BRAND, FLYING FLEA POWERED BY ROYAL ENFIELD

Source text: ID:nBSE2pdkFG

Further company coverage: EICH.NS

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Nov 1 (Reuters) - Eicher Motors Ltd EICH.NS:

• OCT TOTAL MOTORCYCLE SALES AT 1,10,574 UNITS

Source text: ID:nBSE9DRfDR

Further company coverage: EICH.NS

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Oct 7 (Reuters) - Ashok Leyland Ltd ASOK.NS:

• INDIA'S AUTO DEALER'S BODY: SEPT OVERALL SALES WITNESSED SIGNIFICANT DECLINE OF -9.26% YOY

• INDIA'S FADA: PASSENGER VEHICLE DEALERS FACING ALL TIME HIGH INVENTORY LEVELS OF 80-85 DAYS

• INDIA'S FADA: PASSENGER VEHICLE DEALERS UNDER FINANCIAL PRESSURE, INCREASED CASH FLOW CHALLENGES

• INDIA'S FADA: URGE RBI TO ISSUE STRICTER RULES ON CHANNEL FUNDING TO MITIGATE DEALERS FINANCIAL RISK

• INDIA'S FADA - MIXED PERFORMANCE OBSERVED ACROSS SEGMENTS IN SEPT

• INDIA'S FADA - MONSOON DISRUPTED RETAIL PERFORMANCE IN REGIONS, NEGATIVELY IMPACTING DEMAND

• INDIA'S FADA - FESTIVE SEASON BOOST WITH BOTH NAVRATRI, DIWALI FALLING IN SAME MONTH,EXPECTED TO UPLIFT SALES

• INDIA'S FADA - FAVOURABLE AGRI CONDITIONS LIKELY TO SPUR RURAL DEMAND FOR 2W, PV, TRAC SEGMENTS
  

Source text for Eikon: [ID:]

Further company coverage: ASOK.NS

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Oct 1 (Reuters) - Eicher Motors Ltd EICH.NS:

• SEPT TOTAL VECV SALES 7,609 UNITS

Source text for Eikon: ID:nBSExdMQL

Further company coverage: EICH.NS

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