Harley, Bajaj Triumph to put a spoke in Eicher’s wheel? Nischal Maheshwari answers

economictimes.indiatimes.com:

Nischal Maheshwari, CEO-Institutional Equities, Centrum Broking, says Harley's launch is at a very good price actually. At less than Rs 3 lakh, it is available at a very attractive price compared to Enfield’s 400cc which is going at Rs 3.5 lakh So, there is going to be pressure and there is a fairly good following in the higher price, higher capacity segment of Harley across the world. Then Bajaj is coming with Triumph.

So, Enfield has to face competition in that segment now and its market share will go down.Is this a knee-jerk reaction in Eicher or do you think this is going to be a long damaging thing for someone who is cherishing almost 70% of the market share in the 250cc segment and even a 10% dip would be meaningful?When you are holding such a large market share, there is only one way to go. It is basically down and given that there has been very good sales for the last five years in that particular segment, obviously it was supposed to attract competition and the competition has come. Harley's launch is at a very good price actually.

At less than Rs 3 lakh, it is available at a very attractive price compared to Enfield’s 400cc which is going at Rs 3.5 lakh. So, one, there is going to be pressure and there is a fairly good following in that higher price, higher capacity segment of Harley across the world. So, there is going to be competition and then Bajaj is coming with its Triumph, so in that segment now it has to face competition and the market share will go down.

There is no doubt about it. The only thing one has to see is how Eicher reacts, whether it cuts down prices and tries to compete with them. That is what the market is worried about.