Royal Enfield Edges Past Harley-Davidson In Terms Of Market Capitalisation

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Eicher Motors, the parent company of Royal Enfield, edged past Harley-Davidson in terms of market capitalisation. Royal Enfield had posted higher volumes when compared to Harley-Davidson in Monday, a near 33 percent hike in profits.

On Monday, Eicher posted a market cap of $57 million higher than Harley-Davidson, two years ago, the gap was $13 million.

Royal Enfield has been aggressive in sales based on the new offerings in the mid-capacity engines. Their sales volumes grew more than 50 percent in the last four years, and Harley-Davidson has been in single digits.

As per the latest global numbers - based on market cap, Bajaj Auto is on top with $9.9 billion, followed by Eicher at $7.48 billion, and Harley-Davidson is at $7.42 billion.

Royal Enfield holds 95 percent of the market share in the 250cc and above, in 2014, its best performance of sales stood at 300,000 units and is looking to better it in 2015, targeting 450,000 motorcycles.

Eicher has the highest operating margins globally at 28 percent and Harley-Davidson is at 24.9 percent. Eicher in India is second best to Hero Motocorp, however, Royal Enfield is an investors delight due to its brand premium, revenue and margin growth.

Royal Enfield currently offers, the Standard, Classic, Thunderbird and Continental GT from its stable and these come in a different capacity from 350cc onwards. Recently, the company showcased its new entrant, Himalayan, an adventure tourer with a new engine platform.

The two-wheeler manufacturer is looking to hit the sweet spot as number one in terms market share in the world, and Hero is looking to make it a formidable for Eicher.

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Story first published: Tuesday, February 16, 2016, 12:26 [IST]
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