Shares of Eicher Motors gained on Tuesday after the automobile company management projected double-digit growth in the commercial vehicle segment in the next 2-3 years. The company's management in the investors meeting on Monday said that they expect an increase in market share across all segments.

The manufacturer of commercial vehicles and Royal Enfield sees huge potential for growth in rural areas for the latter's franchise. Further, the company, in a filing to the stock exchanges said that it is gradually ramping up production to meet rising demand.

The management indicated that the development of electric vehicles is on track and the first launch is expected in financial year 2026.

Last month, some brokerage houses gave skeptical commentary about Royal Enfield's future sales potential.

Brokerage firm JPMorgan highlighted that the management of Eicher Motors maintains a cautious yet optimistic outlook on demand and does not foresee any production constraints. Furthermore, JPMorgan noted that the company expects raw material inflation to remain largely stable in the future.

During the March quarter, Royal Enfield, a part of Eicher Motors, recorded sales of 2,14,685 motorcycles, up 18 percent, from 1,82,125 motorcycles sold during the same period in 2021-22.

Eicher Motors' consolidated net profit increased by 49 percent to Rs 905 crore for the fourth quarter ended March 31, 2023.

Shares of Eicher Motors are trading 0.8 percent higher at Rs 3,701.55.