The market cap of Eicher Motors was $57 million more than Harley-Davidson on Monday, three of the five top places for 2-wheeler market cap are occupied by Indian companies.
Royal Enfield has registered a sales growth of more than 50 percent every year for the past four years and the automaker is still enjoying the best times with sales growing every month while the parent company Eicher Motors has left behind Harley-Davidson in market capitalization.
The market cap of Harley-Davidson was $13 billion more than Eicher Motors two years ago, however the Indian automaker overtook the former by $57 million on Monday. Eicher Motors has one of the highest operating margins at 28 percent compared to the 24.89 percent of the American automaker.
Last year, Eicher owned Royal Enfield defeated Harley-Davidson with respect to global sales volume where the Chennai based manufacturer registered a sale of 4,52,812 units globally while the American automaker saw a 1.3 percent fall with a sale of 2,64,627 units.
Bajaj Auto is at the top with a market cap of $9.9 billion with Eicher Motors following at $7.48 billion and Harley-Davidson on third place with $7.42 billion and Hero MotoCorp on the fourth place with $7.35 billion according to the latest report on global market cap.
Eicher Motors was struggling with sales of Royal Enfield motorcycles a few years ago but the introduction of new models and extensive marketing changed the situation drastically. The automaker sold 1.75 lakh units in 2013 which was a huge 55 percent growth when compared to the 1.13 lakh units in 2012. Royal Enfield has recently announced that it is setting up a new facility in Chennai to increase production to 9 lakh units a year from the current 4.5 lakh units.
Eicher Motors Overtakes Harley-Davidson
– Eicher deals in commercial vehicles such as trucks, tractors, etc. and it also owns Royal Enfield
– It overtook Harley-Davidson in market cap as a result of the growing popularity of Royal Enfield
– Harley-Davidson was ahead by $13 billion two years ago, however it got left behind by $57 million on Monday
– It is on the second place on the top five list with $7.48 billion market cap