Last Updated: July 04, 2023, 13:19 IST
Eicher Motors share price fell over 4 per cent in Tuesday’s trading session after rival Hero Moto Corp and Harley Davidson announced the debut of the X440 in India. Eicher Motors’ share price opened at Rs 3,570 apiece on BSE today.
Harley-Davidson and Hero MotoCorp have launched the X440 in India, which is the smallest and most affordable Harley-Davidson bike to ever come to India since the Street 750. Priced at Rs 2.29 lakh (ex-showroom), the X440 competes against the upcoming Royal Enfield Hunter 450 launched by Eicher Motors.
The bike has been jointly designed and developed by Harley and Hero, and bookings are expected to open on July 4, 2023. The launch of the bike marks a new era for both Hero MotoCorp and Harley-Davidson as they strive to win in the premium segment of motorcycles in India. Commenting on the launch, Niranjan Gupta, CEO of Hero MotoCorp, said, “We will do whatever we can to win in the premium segment.”
Technically, Eicher looks weak and can settle around Rs 3400 and watch for 200 DMA which is near Rs 3304. We remain neutral on this development,” said Prashanth Tapse, Senior Vice President of Research at Mehta Equities.
In order to expand its presence in the premium segment, Hero MotoCorp said on Monday that it is placing a significant bet on a relationship with legendary American brand Harley-Davidson and record-breaking product launches on its own, according to reports.
The partners highlighted that the partnership would also allow Harley to access affordable areas, allowing more people to purchase the renowned brand. The Harley-Davidson X 440 costs between Rs 2.29 lakh and Rs 2.69 lakh (ex-showroom), it is manufactured by Hero MotoCorp’s Neemrana plant.
In the fourth quarter of the current fiscal year, it would also introduce a bike on the same platform with the Hero MotoCorp brand, marking its entry into the 350cc-500cc motorbike sector in the Rs 3 lakh and above price range. Pawan Munjal, chairman of Hero MotoCorp, confirmed a Mint report from last month regarding a proposed 400cc model with its own badge based on the Harley platform.
In the same segment, the Harley-Davidson X440 from Hero MotoCorp will compete against the Scrambler and Speed 400 motorcycles from Bajaj-Triumph and the middleweight models from Royal Enfield. New entrants to the market Bajaj-Triumph and Hero-Harley will try to break up Royal Enfield’s monopoly , which it currently holds over the 250cc to 500cc motorbike market with a share of just under 93 per cent.
As per trendlyne data, the stock price rose 25.6 per cent and underperformed its sector by 12 per cent in the past year.
According to analysts, a strong gap-down opening is seen in prices with huge volumes, as of now prices are placed at key support around Rs 3,500, if broken on a closing basis would trigger further weakness towards Rs 3,300, immediate resistance is at Rs 3,600.