Eicher Motors bets on festive season, new launches to prop up sales

Multiple headwinds have dented the company's September sales

Eicher Motors’ shares are down by a fifth from their last month highs on worries of slowing sales, higher product costs, production disruption and rising competition. The key worry for the maker of Royal Enfield motorcycles is the near-term volume pressure. While fiscal year-to-date sales have been healthy at 13 per cent, the company recorded a growth of just two per cent in September. But, if Eicher can turn around the recent volume trend, investor sentiment could also revive given the drop in stock valuations.  And there is hope, say analysts.
 
Floods in Kerala, its major market (accounting for