Eicher Motors’ shares feel more heat after launch of Bajaj’s Triumph Speed 400X and Scrambler 400X

On Tuesday, it was the launch of the Harley Davidson bike in collaboration with Hero MotoCorp that made Eicher Motors’ shares stutter; on Wednesday, they suffered one more blow from Bajaj Auto, which launched Triumph Speed 400X and Scrambler 400X to intensify competition for Royal Enfield.

Eicher Motors, which is the parent company of Royal Enfield, saw its shares go down 2.71 per cent to Rs 3,309.95 on Wednesday (July 5).

It added insult to injury as the company’s shares had fallen 6.26 per cent to Rs 3,402.00 on Tuesday.

On Wednesday, the day’s low for Eicher Motors’ shares was Rs 3,281.25. In just two days, the stock has lost steam with a slide of around 10 per cent.

Competition from Bajaj

Bajaj on Wednesday launched two of its bikes, Triumph Speed 400X and Scrambler 400X. While the company priced Triumph Speed 400X at Rs 2.33 lakh, it has not announced the rate for Scrambler 400X.

Triumph Motorcycle is the largest bike manufacturer from the UK. Bajaj will sell the new bikes in Triumph’s exclusive showrooms.

Its heavy engine and price range give direct competition to Royal Enfield’s models like Classic, which come in the range of Rs 1.52 lakh to Rs 2.25 lakh.

Though Royal Enfield is No. 1 in its category and has a strong legacy, bikes as famous as Triumph and Harley Davidson entering the Indian market in almost the same price range intensify the competition for Eicher Motors’ renowned bike.

Competition from Harley-Davidson’s X440 

On Tuesday, Harley-Davidson in collaboration with Hero MotoCorp launched the X440 bike with a starting price of Rs 2.29 lakh.

The bike is also expected to give direct competition to Royal Enfield since owning a Harley-Davidson in a price range of as low as Rs 2.29 lakh will make Indian customers spoilt for choice.