Do you know why the shares of Eicher Motors are down today?

Following the announcement by Harley Davidson and competitor Hero Moto Corp that the X440 will be making its Indian debut, Eicher Motors’ share price dropped more than 4% during Tuesday’s trading session. Today’s BSE opening price for Eicher Motors shares was Rs 3,570 per share.

Since the Street 750, the X440 is the smallest and most cheap Harley-Davidson motorcycle to be introduced in India by Harley-Davidson and Hero MotoCorp. At Rs 2.29 lakh (ex-showroom), the Royal Enfield Hunter 450, which Eicher Motors will soon sell, is in direct competition with the X440.

Reservations are anticipated to begin on July 4, 2023, and the motorcycle has been collaboratively conceived and developed by Harley and Hero. As they compete to dominate India’s luxury motorcycle market, Hero MotoCorp and Harley-Davidson enter a new era with the debut of the bike. Niranjan Gupta, CEO of Hero MotoCorp, commented on the introduction by saying, “We will do everything we can to win in the premium segment.”

Technically, Eicher is weak and might settle around Rs. 3400 while keeping an eye on the 200 DMA, which is close to Rs. According to Prashanth Tapse, Senior Vice President of Research at Mehta Equities, “We remain uncommitted to this development.

According to sources, Hero MotoCorp said on Monday that it is putting a substantial wager on a partnership with venerable American brand Harley-Davidson and record-breaking product releases on its own in order to increase its footprint in the premium category.

The companies emphasized that more people would be able to acquire the well-known brand thanks to the agreement since Harley would have access to more inexpensive places. The Hero MotoCorp Neemrana facility makes the Harley-Davidson X 440, which has an ex-showroom price range of Rs 2.29 lakh to Rs 2.69 lakh.

It would also launch a bike on the same platform as the Hero MotoCorp brand in the fourth quarter of the current fiscal year, marking its debut into the market for 350cc–500cc motorbikes in the Rs 3 lakh and above price bracket. A Mint article from last month mentioning a projected 400cc variant with its own badge built on the Harley chassis was verified by Pawan Munjal, chairman of Hero MotoCorp.

In the same category, the Scrambler and Speed 400 bikes from Bajaj-Triumph and the middleweight versions from Royal Enfield will fight against the Harley-Davidson X440 from Hero MotoCorp. Bajaj-Triumph and Hero-Harley, two recent market entries, will attempt to end Royal Enfield’s monopoly, which it presently enjoys with a share of just about 93% over the 250cc to 500cc motorcycle market.

According to trendlyne statistics, the stock price increased by 25.6% over the last year, underperforming its industry by 12%.

The prices are now located at a crucial support level around Rs. 3,500, which if broken on a closing basis will cause additional weakening around Rs. 3,300. The immediate resistance level is Rs. 3,600, according to experts.