Last Updated on October 12, 2023 by BFSLTeam BFSLTeam
Eicher Motors Ltd. is a well-known name in India’s automobile industry, with a history that goes back to 1948. Its range of vehicles is part of the daily lives of many people across the country. Both in cities and villages, you will find Eicher’s vehicles, including the famous Royal Enfield motorcycles, being used for various purposes. They are known for their reliability and efficiency, making life easier for their owners.
In a village, a farmer might use an Eicher vehicle to transport goods, while in the city, a Royal Enfield motorcycle might be a young professional’s choice for commuting. These vehicles help people get where they need to go, aiding in both personal and professional tasks.
Beyond individual use, Eicher’s commercial vehicles, produced with Sweden’s AB Volvo, play a key role in businesses. They help in moving goods from one place to another, supporting the country’s trade and commerce. This partnership highlights Eicher’s commitment to quality and innovation in the automotive industry.
In this blog, we’ll talk about the company’s history, its major subsidiaries, acquisitions, and the wide range of products it offers.
Table of Content
About Eicher Motors Ltd.
The foundation of Eicher Motors Limited was laid with a firm commitment to redefining the automotive industry.
| Founder | Vikram Lal |
| Industry Type | Automotive |
| Founded | 1948 |
| Headquarters | New Delhi, India |
| Key People | Siddhartha Lal (MD & CEO) |
| Countries | Over 60 countries |
| Market Cap | ₹944.24 billion |
| Employees | Over 5,000 |
Overview of Eicher Motors Ltd.
Eicher Motors Limited (EML) is a well-known company that has made a big name in the automotive industry. It’s the parent company of Royal Enfield, a leading name in middleweight motorcycles around the world. Royal Enfield has been making motorcycles since 1901, making it the world’s oldest motorcycle brand still in production. The focus of Royal Enfield is to bring back simple, engaging, and accessible motorcycling. It operates not only in India but also in over 60 countries worldwide. It has modern development facilities in Leicestershire, UK and Chennai, India where it makes motorcycles for the world. The brand is committed to combining modern elements with its rich heritage, creating a lot of excitement among motorcycle enthusiasts worldwide.
Being listed on the BSE and National Stock Exchange, Eicher Motors is a significant part of India’s growing automotive industry, having been part of the NSE’s benchmark Nifty 50 Index since April 1, 2016. The company continues to grow and evolve, offering diverse and innovative automotive solutions not only in India but also across the globe.
Also Read: Bajaj Auto Ltd.
Eicher Motors Ltd. History
1948: The Goodearth Company was established for selling and servicing imported tractors.
1958: Eicher Tractor Corporation of India Ltd. is incorporated.
1959: The first indigenous Eicher tractor was built in its Faridabad factory.
1960: The company’s name changed to Eicher Tractors India Ltd.
1982: Eicher Motors Ltd. was incorporated.
1987: Eicher Tractors became a public company.
1993: Eicher acquired a majority stake in Enfield India.
1994: The technical assistance agreement with Mitsubishi concludes after successful technology transfer and total indigenisation. Enfield India Ltd. changed its name to Royal Enfield Motors Ltd.
2008: Eicher and Volvo Group established VE Commercial Vehicles Limited.
2016: Royal Enfield launched its first adventure tourer motorcycle, the Himalayan.
2018: Royal Enfield launched Continental GT 650 and Interceptor INT 650.
2019: Royal Enfield shifted towards complying with BS VI emission standards while simultaneously expanding its retail presence through the establishment of studio stores.
Major Subsidiaries of Eicher Motors Ltd.
In the panorama of Eicher Motors Ltd., its significant subsidiaries hold monumental roles, steering the parent company towards consistent growth and expansion in various sectors of the automobile industry.
Royal Enfield
Founded in 1901, Royal Enfield is a major player in the global motorcycle market, with operations in over 60 countries. It stands as the world’s oldest motorcycle brand in continuous production, with its sturdy and stylish middleweight motorcycles symbolising robust performance and classic design. The introduction of renowned models like the Himalayan, Interceptor 650, and Continental GT 650, have further solidified Royal Enfield’s prestigious reputation. Royal Enfield has consistently made headway in expanding its global footprint. In 2015, the company established its first direct distribution subsidiary in North America, and in 2017, it inaugurated a state-of-the-art Tech Centre in Leicestershire, UK, to enhance its global product development.
VE Commercial Vehicles Limited (VECV)
Established in 2008 through a partnership between Eicher Motors Ltd. and Sweden’s AB Volvo, VECV represents a significant advancement in the commercial vehicle industry in India and other emerging markets. With a comprehensive range of trucks and buses spanning from 4.9 to 55 tonnes, VECV caters to diverse transportation needs across various sectors. The cutting-edge manufacturing facility operates as a worldwide centre for manufacturing medium-duty five- and eight-litre engines for the Volvo Group. As a clear demonstration of its accomplishments, in 2010, VECV launched the VE series of heavy-duty trucks, underscoring its steadfast dedication to delivering sturdy and efficient solutions for heavy-duty transportation needs.
Major Acquisitions and Joint Ventures by Eicher Motors Ltd.
Acquisition of Enfield India
In the year 1990, Eicher Motors Ltd. made a crucial business move by acquiring 26% stake in Enfield India. This critical acquisition played a transformative role for both companies, leading to the rebranding of Enfield India Ltd to Royal Enfield Motors Ltd in 1994. This acquisition allowed Royal Enfield to expand its reach and introduce several new models that garnered global appreciation. For instance, the Thunderbird series and the Himalayan have become notable names in the motorcycle industry. Additionally, this acquisition was a step towards global expansion, allowing the establishment of a direct distribution subsidiary in North America and a state-of-the-art Tech Centre in Leicestershire, UK. These milestones post-acquisition reflect the continued growth and expanding vision of Royal Enfield, aiming to transcend geographical boundaries and establish a global presence.
Joint Venture with AB Volvo
A significant joint venture took place in 2008 when Eicher Motors Ltd collaborated with AB Volvo, leading to the establishment of Volvo Eicher Commercial Vehicles Limited (VECV). This joint venture underscored Eicher’s commitment to providing innovative and efficient transportation solutions to the global market. This collaboration laid the foundation for the introduction of the VE series of Heavy Duty trucks in 2010, further solidifying Eicher’s position in the commercial vehicle industry. Moreover, the collaboration enabled the establishment of an integrated manufacturing plant in Pithampur, Madhya Pradesh, which is now a global hub for medium-duty five- and eight-litre engines for the Volvo Group. This joint venture highlights Eicher’s focus on technological advancement and its commitment to offering world-class, eco-friendly products in the automotive industry.
Also Read: Tech Mahindra Ltd.
Products/Brands Under Eicher Motors Ltd.
Thunderbird 500 and 350 models
Introduced in 2012, the Thunderbird models stand out for their performance and style. The 500 model has a 500 cc engine with a power of 27.2 bhp, while the 350 model comes with a 350 cc engine offering 19.8 bhp. Both have a 5-speed transmission, ensuring smooth long rides.
Himalayan
The Himalayan was launched in 2016, and designed for both city roads and mountain trails. It features a new LS410 engine that provides high torque and usable power at lower RPMs, a 5-speed gearbox, and a power output of 24.5 BHP.
Continental GT 650 and Interceptor INT 650
These motorcycles, launched in 2018, feature a 648 cc parallel-twin engine and a 6-speed gearbox. Delivering 47 bhp of power and 52 Nm of torque, they offer a comfortable and lively ride with dual-channel ABS for added safety.
Classic 350
The Classic 350 is a beloved model with a single-cylinder, 4-stroke, air-cooled engine. It produces 19.1 bhp of power and 28 Nm of torque and has a 5-speed transmission, ensuring a dependable and enjoyable ride.
Bullet 350
The Bullet 350, known for its simplicity, features a single-cylinder, 4-stroke engine that delivers 19.8 bhp and 28 Nm of torque, along with a 5-speed constant mesh transmission.
Conclusion
Eicher Motors Ltd. actively contributes to society and national growth. The firm emphasises eco-friendly production, community advancement, and enhancement of workforce skills. Their commitment to road safety is evident in their product standards. Looking ahead, Eicher is set on strengthening its global presence and continuing its legacy of innovation. The company’s focus remains on delivering advanced, efficient, and high-quality vehicles while expanding its worldwide consumer base.
