Eicher Motors Ltd. has overtaken Bajaj Auto Ltd. to become India's largest two-wheeler company by market capitalisation.
The maker of Royal Enfield motorcycles is valued at Rs 85,580 crore as of Tuesday. That compares with Rs 81,750 crore for Bajaj Auto.
Bajaj Auto shares have underperformed over the last six months after both domestic sales and exports came under pressure. The Rajiv Bajaj-led company saw demand fall in its premium bike segment. Besides, it has no presence in the scooters segment. Bajaj Auto's realisations were also impacted by a stronger rupee.
In contrast, a double-digit volume growth in Royal Enfield sales worked in favour of Eicher Motors. Its order book remained healthy despite disruption due to demonetisation and the Goods and Services Tax. The company's commercial vehicles segment also saw a recovery.
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