Eicher Motors Ltd expects sales at its unit Royal Enfield, which manufacturers India's iconic Royal Enfield Bullet motorcycles, to grow about 30% in 2013 to 13,000 units a month as demand continues to grow at a fast clip.
"Royal Enfield sales crossed the 10,000-units-per-month mark for the first time in July," Chief Executive Siddhartha Lal told reporters at a post-earnings conference call Friday. "The demand continues to be good and we believe that this run rate is sustainable for the rest of the year as well."
Eicher Motors is more than doubling production of its Royal Enfield motorcycles to meet the rising demand.
The company is setting up a factory in the southern Indian city of Chennai to raise its production capacity to 150,000 motorcycles a year from 70,000. The factory is expected to start operations by the first quarter of 2013.
Royal Enfield sold 75,000 motorcycles in 2011, said Mr. Lal, who is also the company's managing director.
On Thursday, Eicher Motors said its consolidated net profit for the second quarter ended June 30 fell 3% to 1.13 billion rupees ($20.3 million) as it had a one-time gain in the corresponding quarter of the previous fiscal year.
Sales in the past quarter grew 24% to 15.85 billion rupees.
Besides motorcycles, Eicher Motors makes trucks and buses through a joint venture with Sweden's Volvo AB.
No comments:
Post a Comment