Eicher Motors

Eicher Motors Limited (EML) is a leading automobile company that manufactures commercial vehicles, farm equipment and India’s iconic motorcycle brand Royal Enfield. The company is a global leader in middleweight motorcycles. It is listed on BSE and the National Stock Exchange and is part of the key NSE index Nifty50.

Eicher Motors Ltd started its journey as Goodearth Company for selling and servicing imported tractors in 1948. Following the incorporation of Eicher Tractor Corporation of India Ltd in 1957, the Eicher group launched India’s first locally made tractor from its Faridabad plant in 1959.

In 1982, the group entered into a partnership with Japan’s Mitsubishi Corp for manufacturing light commercial vehicles. Eicher Tractor went pubElic in 1987. Eicher Goodearth acquired a 26% equity stake in Enfield India Ltd in 1990 and later in 1993 increased to a majority 60% shareholding in Enfield India Ltd. The group changed the name of Enfield India Ltd to Royal Enfield Motors Ltd in 1994.

Eicher Motors disinvested its tractors and engines business to TAFE Motors & Tractors Ltd (TMTL) in 2005. In 2008, it formed a joint venture with Sweden’s AB Volvo, Volvo Eicher Commercial Vehicles Limited (VECV), for producing commercial heavy vehicles.

Eicher Motors sold 8,34,895 units of Royal Enfield motorcycles in India and abroad in 2022-23 against 6,02,268 units in the previous year.

Business operations

Eicher Motors operates in two verticals – motorcycles and commercial vehicles

Royal Enfield

Royal Enfield, the crown jewel of Eicher Motors, is a leading global brand in middleweight motorcycles. It is one of the oldest motorcycle brands in the world which is still in production since 1902. The company produces a range of motorcycles under the Royal Enfield brand. The line-up includes Interceptor 650 and the Continental GT 650 in the 648cc

segment. It also manufactures Bullet, Classic, Hunter and Meteor in 350cc segment and Thunderbird model in the 500cc segment.

Royal Enfield has a presence in more than 60 countries across US, Latin America, Europe, the UK, the Middle East and South-East Asia regions.

It has development facilities in the UK (Leicestershire), and India (Chennai), and manufacturing plants in Tamil Nadu.

Royal Enfield has 18 company-operated stores and more than 850 dealers in main cities and towns in India.

VE Commercial Vehicles Limited

Eicher Motors produces commercial vehicles in a joint venture with Sweden’s AB Volvo. Volvo Eicher Commercial Vehicles Limited (VECV) owns a range of trucks and buses from 4.9-55 tonnes. VECV houses trucks and buses under the Eicher brand, Volvo trucks in India, engine manufacturing and exports for Volvo Group, and Eicher component business.

The company’s manufacturing plant in Pithampur, Madhya Pradesh, also produces medium-duty 5 and 8-liter engines for Volvo Group.

Eicher Motors market capitalisation was ₹1.12 lakh crore as of December 28, 2023. Eicher Motors share price has surged nearly 67% in the last three years.

Financial Highlights

• Total revenue from operations in FY23 stood at ₹14,442 crore, up by 40.2% against ₹10,298 crore FY22.
• EBITDA in FY23 at ₹3,444 crore, up by 58.5% against ₹2,172 crore in FY22.
• Eicher Motors’ profit after tax stood at ₹2,914 crore, up by 73.8% against ₹1,677 crore in FY22.
• The earnings per share for FY 2023 stood at ₹95.91, compared to ₹58.02 in the previous fiscal year.