Eicher draws plans for foray in M/HCVs - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Eicher draws plans for foray in M/HCVs

Dec 20, 1999

Eicher Motors, light commercial vehicle (LCV) manufacturer is planning a break in the medium/heavy commercial vehicle (M/HCV) segment. Eicher Motors is the third largest LCV manufacturer in the country with nearly 10% market share in September 1999. The company is also engaged in the manufacture of tractors and has cornered approximately 7% market share.

According to news reports appearing in a leading financial newspaper, the company will roll-out its first batch of medium commercial vehicles (MCVs) on a new platform by January 2000. The heavy commercial vehicles (HCVs) launch is slated for March 2001.

Mr Rakesh Kalra, managing director of Eicher Motors, disclosed that the MCVs will be priced in the region of Rs 500,000-525,000. The company will have a plant with a production capacity of 10,000 units of HCVs. It will invest Rs 1 bn in this facility. The MCVs are being manufactured at the company’s Pitampur plant. The plant has a manufacturing capacity of 12,000-15,000 units p.a.

The M/HCV segment is currently dominated by TELCO and Ashok Leyland. Eicher will draw its competitive edge from its indigenously developed, Euro norms compliant engines.

Analysts are of the opinion that Eicher’s move to branch out in M/HCVs is attributed to the robust demand in that segment. LCV sales have not picked up as much as M/HCVs, and Eicher will be looking to reap the benefits of strong M/HCV demand. It will look to leverage its LCV brand (Canter) and extensive distribution network. However, until its M/HCV operations break-even, its investments in this venture will have negative impact on profitability.

Equitymaster requests your view! Post a comment on "Eicher draws plans for foray in M/HCVs". Click here!


More Views on News

TATA MOTORS Announces Quarterly Results (2QFY20); Net Profit Up 117.4% (Quarterly Result Update)

Oct 29, 2019 | Updated on Oct 29, 2019

For the quarter ended September 2019, TATA MOTORS has posted a net profit of Rs 2 bn (up 117.4% YoY). Sales on the other hand came in at Rs 654 bn (down 9.3% YoY). Read on for a complete analysis of TATA MOTORS's quarterly results.

TATA MOTORS Announces Quarterly Results (1QFY20); Net Profit Down 58.4% (Quarterly Result Update)

Jul 29, 2019 | Updated on Jul 29, 2019

For the quarter ended June 2019, TATA MOTORS has posted a net profit of Rs 34 bn (down 58.4% YoY). Sales on the other hand came in at Rs 615 bn (down 8.4% YoY). Read on for a complete analysis of TATA MOTORS's quarterly results.

TATA MOTORS 2018-19 Annual Report Analysis (Annual Result Update)

Jul 5, 2019 | Updated on Jul 5, 2019

Here's an analysis of the annual report of TATA MOTORS for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of TATA MOTORS. Also includes updates on the valuation of TATA MOTORS.

More Views on News

Most Popular

India: Recovery Stalled by Vaccine Games? (The Honest Truth)

Apr 13, 2021

Ajit Dayal on how India's vaccine strategy will impact the markets.

4 Stocks to Make Your Portfolio Immune to the Second Covid Wave (Profit Hunter)

Apr 6, 2021

Rather than predicting the market, successful investing is more about preparing well and placing your bets accordingly.

An India Revival Stock I'm Bullish On... (Profit Hunter)

Apr 9, 2021

This could take India to the position of 3rd largest economy.

Why Did the Market Crash on Monday? (Fast Profits Daily)

Apr 13, 2021

In this video, I'll you what I think is the real reason behind yesterday's market crash.

A Unique Sector for Short-Term Profits (Fast Profits Daily)

Apr 12, 2021

This ignored sector could deliver big short-term profits.


India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms


Apr 16, 2021 (Close)


  • Track your investment in TATA MOTORS with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks