Siddharth Lal, MD and CEO of Eicher Motors, spoke to CNBC-TV18 about the reasons for sales slowdown and Eicher's strategy for 2019.
“Demand and the growth story is what it is all about. To capitalise on that, we are doing basic stuff. Basically going back to understanding at the brand level, at the enquiry level, at the walk-in level and at the conversion level, how we operate and understanding different markets, different segments, different ideas where what is going on and of course basically what has happened is after 8-10 years of phenomenal growth, more than 40 percent compounded growth, I wouldn’t have predicted that 10 years ago,” Lal said on Tuesday.
“At Royal Enfield, I would say we are at the right juxtaposition right now. We are at a point where, the first huge phase of growth has sort of petered out a bit and when I say petered out a bit, of course it is a bit of reaction because of December sales drop, which hasn’t happened in decades for us but that is more transitory as far as I am concerned because we are still on a premiumisation trend at Royal Enfield and that is what we are driving,” he added.
Talking about the business and growth prospects, Lal said, “It is fundamentals of the business, which we are focused on. For the year, we still have high single digit growth for 2018-2019 and in fact the signals are that with a bit of correction behind us that we have, we are going to continue now on our growth journey. This is not the new normal of negative growth, certainly not but who knows, we are talking about the future. This is not something that I can predict with certainty. The only thing I can predict is where we are putting in our efforts and what are the signals we are getting? And those are all by and large in the right domain".
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