Eicher Motors Limited: History, Company Profile, Founder

onJuly 27, 2022

The automotive industry in India is quite large, and it has crossed Germany by sales in 2020. There are thousands of automotive companies in India. Establishing and maintaining a reputation in the automotive industry in this competitive world is challenging.

But some companies have won many accolades and fame for more than 60-70 years. They are not only famous in India, but also their products are well known in other countries around the world. One such company is Eicher Motors Limited.

Eicher Motors is an automobile company in India with New Delhi headquarters. It manufactures motorcycles and commercial vehicles. This company not only operates in India but also in 60 countries over the world. The revenue of Eicher motors was US$1.4 billion in 2020.

Eicher Motors has manufacturing locations in Maharashtra, Tamil Nadu, Haryana, and Madhya Pradesh. 

The company is quite famous for manufacturing an iconic brand of motorcycle, i.e., Royal Enfield, one of the most luxurious motorcycle brands in India. The company has produced six models ranging from 300 to 600 CC. Eicher motors also manufacture different types of gear in the market.

VE Commercial vehicles Limited is a joint agreement of Eicher Motors and Volvo, and it manufactures commercial vehicles like Volvo Buses and Eicher trucks in India. The products of VECV range from five to 40 tons gross vehicle weight trucks and 65-seater buses.

The Eicher company has also partnered with Mitsubishi Corporation of Japan, for which canter vehicles were manufactured. The company manufactures 20,000 canter vehicles annually.

The company got many awards for its excellence in the automotive field. It got an IES excellence award for its good productivity, quality, and manufacturing.

Eicher Motors Limited’s name is Bombay Stock Exchange (BSE) and National Stock exchange (NSE). Today the company is headed by Siddhartha Lal.

Company Profile

Key Points Information
Name Of The Company Eicher Motors Limited
Previous Name Of The CompanyGood Earth Company
Name Of The FounderVikram Lal
Current OwnerSiddhartha Lal
Year Of Establishment 1948
CEOSiddhartha Lal

Founder Of the Company

The history of Eicher’s company dates back to 1948. Manmohan Lal founded the Good Earth company in 1948. Later this company joined hands with a German company, Eicher tractors, to manufacture tractors.

The Good earth company made its first tractor in 1960, later manufactured light commercial vehicles in 1989, and then moved to manufacture heavy vehicles.

His son Vikram Lal studied Mechanical Engineering and joined his father’s company in 1966.

Vikram Lal is married and has two sons and one daughter. The son of Vikram Lal (Siddhartha Lal) is now the company’s owner.

Siddhartha Lal was born in October 1973. He completed his twelfth grade from Doon school and graduated in commerce from St. Stephens College, Delhi, in 1994. He had completed his master’s in automotive engineering in England.

He joined a company named Man Nutzfahrzeuge AG after completing his studies. Siddhartha Lal joined his father’s company in 1999. He first worked Eicher tractor division for some years and then became CEO of Royal Enfield, a subsidiary of Eicher Motors Limited.

He became CEO of Eicher Motors in the year 2004. 

He had a great interest in motorcycles. Eicher motors decided to discontinue Royal Enfield motorcycles in the year 2000. But Siddhartha Lal took a keen interest in the Royal Enfield brand and requested the board members to give it a second chance to the brand. Fortunately, all the board members agreed with his decision. 

Siddhartha Lal ordered to shut Royal Enfield’s new plant in Jaipur and shift funds towards the existing plants. He even ordered to stop the dealer discounts, costing 80 lakhs a month company. These changes made Royal Enfield a global brand today.

Now Siddhartha Lal is working as the managing director of the company.

History Of Eicher Motors

● 1948

Eicher tractors were set up as Good Earth Company and sold and serviced imported tractors.

● 1952-1957

Good Earth Company sold one thousand five hundred imported tractors from 1952 to 1957.

● 1958

Eicher Tractor Corporation of India Ltd. was founded in 1958.

● 1959

The Eicher tractor corporation of India had partnered with a German Company, Eicher tractor, which manufactures tractors and machinery used in agriculture and engines.

● 1960

The company changed Eicher Tractor Corporation of India to Eicher tractors India Ltd. The company rolled its first tractor from the Faridabad factory in 1960.

● 1960-1965

The company achieved 100 percent independent status between 1960-1965 and is one of India’s best tractor producer companies.

● 1980

The company grew but changed its name again to Eicher Good Earth Limited

● 1982

A deal between Eicher and Mitsubishi was signed in Japan (Tokyo) to produce light commercial vehicles. The company name became stable after 1982.

● 1985

The company celebrated its silver jubilee this year.

● 1986

The company launched its first canter truck in 1986. It rolled out from Pithampur, Madhya Pradesh.

● 1987

Eicher Motors Limited became public in 1987.

● 1990

Eicher Motors purchased 26 percent shares from Royal Enfield India limited.

The company launched a double cabin, milk tanker, and soft drink carrier to satisfy the customer’s needs.

The company launched a four-tire model with selective pockets and a new model with a higher payload in 1990.

It even started an auto finance division whose primary purpose was to finance retail vehicles in rural and semi-urban areas.

The company was preparing to produce 12,000 commercial vehicles per year in the market.

The property of the Eicher motors limited and the companies interlinked with the company exceeded more than 100 crores, for which section 20(a)(ii) and section 26 of the MRTP act became relevant to the company.

● 1992

Fortunately, Eicher Tractors Limited was selected as the company of the year in the category of four-wheelers comprised of commercial vehicles, jeeps, tractors, and others.

● 1993

Enfield India and Eicher were reputed companies at that time. Eicher Motors acquired a 60 percent stake in Royal Enfield India Limited in 1993 and became the company’s major shareholder.

Eicher motors became popular because of the Royal Enfield company.

The company granted 100,000 rights equity shares and kept 1300 shares reserved.

● 1994

Eicher Motors terminated its collaboration with Mitsubishi after achieving total independence. Again, the name of Royal Enfield India Limited changed to Royal Enfield Motors Limited in 1994.

● 1995

The company issued 500reserved shares in 1995. It even introduced Eicher city Map-Delhi.

● 1997

The left-hand drive vehicles were launched by the company mainly for export purposes.

Eicher Motors Limited tied hands with numerous financers so customers could have various finance options.

Eicher Motors Limited launched a new commercial vehicle in the market, i.e., Eicher 10.70 in Karnataka. The vehicle’s design is made in such a way that it will meet all the transportation needs.

● 1998

The company introduced a new left-hand drive vehicle model in the market. It introduced some new models like Eicher 10.60 G and an improved version of 10.90 in the market.

The company launched Skyline school buses in 1998, with various safety features like a stop sign, automatic hazard, and warning lamps or flashing lamps on every corner of the bus, which helps show the vehicle’s position during an accident. The Eicher designed the bus by jointly working with a non-Government organization, i.e., the Institute of road traffic education.

The company made an agreement with Valtra Inc of Finland to produce tractors of higher horsepower. Eicher Motors got an award from the National Productivity Council of the Government of India for improving productivity in the automobile sector.

● 1999

Eicher Motors Limited joined with Volkswagen to introduce passenger cars in the market.

● 2000

Eicher Motors Limited developed a tractor of 61 HP tractor by joining hands with Valta Inc Finland.

The company developed a medium commercial vehicle of 10.5 tonnes.

● 2002

The company launched a 34-seater bus called Volia, whose price is 8.25 lakhs.

● 2003

Eicher Motors Limited launched its first heavy commercial vehicle in the market, known as Eicher Jumbo 20.16. The vehicle rolled out from Karnataka.

The company announced a 32 percent growth in selling its vehicles in the domestic market.

UBI joined hands with Eicher Motors LTD for financing vehicles.

● 2004

SBI did the partnership with Eicher Motors Limited in 2004.

● 2005

The company obtained 100 percent shares of Design Intent Engineering INC in the United States, which provides computer-aided designing services to the public.

The company had a tractor division at Mandideep, Madhya Pradesh, an Engine division in Alwar (Rajasthan), and a gears division at Parwanoo (Himachal Pradesh). It sold all of them to Tafe Motors and Tractors Limited at 300 crores.

● 2006

Eicher Motors Limited obtained a gear manufacturing plant at Dewas, which will produce 5 lakh gears annually and its effect was from 1st November 2006.

The company acquired 100 percent shares of Hoff and its Associates in Michigan, USA, and its subsidiaries in Beijing and Shanghai for USD3.5 crore.

Eicher Motors announced Mr. Siddhartha Lal as the company’s new managing director.

● 2008

Hoff and associates joined Design Intent Engineering INT on 1st January 2008. The name of the Design Intent Engineering INT changed to Eicher Engineering Solutions INT.

The company signed an agreement with Volvo (Sweden) to form a joint venture company known as VE Commercial Vehicles Limited.

● 2010

The VE Commercial Vehicles Limited announced that it would invest Rs 310 crore in the Pithampur plant to produce and assemble medium-duty engines.

Eicher Motors Limited introduced heavy-duty trucks in the market, which are of the VE series.

● 2011

Eicher Motors Limited announced in 2011 that it was allotted land by the Government of Tamil Nādu (SIPCOT) at Oragadam to make a new plant. The primary purpose of the new plant would be to manufacture Royal Enfield motorcycles.

● 2012

Eicher Motors has a business agreement with Polaris Industries INC. Eicher Polaris Pvt Ltd is a joint company between Eicher Motors and Polaris Industries INC.

● 2013

Royal Enfield company announced that it had started its production in the new plant at Oragadam, Tamil Nadu.

The Eicher Trucks and Bus division of VECV announced the production of numerous buses and trucks, varying from 5 to 49 tonnes.

● 2015

Eicher Polaris Private Ltd introduced Multix in the market. Its starting price was 2.59 lakhs. It had a manual transmission and has seating facility for five people. Nearly 3,500 Multix were sold in June 2015.

The Royal Enfield initiated retail operations in Columbia. Fortunately, two stores were opened in Bogota and Medellin.

Royal Enfield also attained Harris performance in the UK, which manufactures motorcycle racing parts.

GAIKINDO Indonesia International Auto Show is a big exhibition show in Indonesia. It was formed in 1986, and its name was initially Gaikindo car exhibition. Later in 2006, it reached a new peak, and its name was changed to Indonesia International Auto show.

Fortunately, Royal Enfield announced its appearance at GAIKINDO international auto show in 2015.

Royal Enfield announced its appearance at Thailand International Motor Expo, Bangkok, in December 2015. The show is organized at Muang Thong Thani Centre in Bangkok each year.

The heavy rainfall in Chennai affected Royal Enfield motorcycles the most. The Royal Enfield company has plants in Tiruvottiyur and Oragadam. But the company decided to shut down its plant for a few months due to heavy rain. The production of motorcycles was significantly affected at that time. Fortunately, in December 2015, things went back to normal.

● 2016

The Royal Enfield opened its first exclusive store in Jakarta in 2016. Again, Royal Enfield tied hands with Flipkart, one of India’s largest online sellers. So, the Royal Enfield gears and different accessories will be available on Flipkart from 2016.

Royal Enfield opened a store in Milwaukee, a city in North America, in 2016. It also opened two exclusive stores in Europe, i.e., in Barcelona and Valencia in Spain.

● 2017

The VE commercial vehicles limited had 100 percent shares in Eicher Engineering solutions which are in North America. But in 2017, the VECV announced that it would strip off 100 percent shares from Eicher Engineering solutions to Segula Technology Espana, located in Spain. The company finalized the deal at $1852000.

Eicher Motors began producing motorcycles in Vallam Vadagal, which is Tamil Nadu.

Royal Enfield launched two famous models in the market. The first one is Classic Stealth -Black, whose engine capacity was 500cc, and the second is Gun metal grey, whose engine capacity was 350cc. These two models were exclusively sold in the market.

Royal Enfield entered the Vietnam market in the year 2017. Vietnam is well known for the motorcycle industry all over Asia. More than 3 million motorcycles are sold in Vietnam annually. Royal Enfield opened its motorcycle store for the first time in Vietnam, i.e., in Ho Chi Minh city.

Royal Enfield revealed two new modern twin-cylinder motorcycles in the EICMA motor show, which was held in Milan, Italy. One of the models was Interceptor INT 650, and the second was continental GT 650. These models had the same frame, suspension system, silencers, and other vital components. But the interceptor was a retro cruiser bike, whereas the continental was a cafe racer.

Both these were sold in India, the United States of America, Australia, and Europe. The Interceptor 650 was the highest-selling bike in the UK in 2020.

Royal Enfield opened a garage cafe in 2017. It is a place that will be appealing not only to motorcyclists but also to food lovers. There is a motorcycle museum, apparel, and accessories store. You can even rent a Royal Enfield motorcycle on rent from this garage cafe. 

The cafe is on the bank of river Baga, which is in Goa.

The Royal Enfield company added 150 new dealerships in India, which makes for 825 stores in India. The Royal Enfield company introduced the Pegasus in the Imperial war museum, UK.

The Classic 500 Pegasus was developed by giving a tribute to Royal Enfield RE /WD 125. It was a lightweight motorcycle that was used during World War 2. It’s sad to say that only 1000 units were available all over the World from India had only 250 of them. Fortunately, the company sold all the 250 motorcycles online only in 178 seconds.

● 2018

Vikram Lal (Father of Siddhartha Lal) became the wealthiest person in 2018. Siddhartha Lal converted the struggled business into a very successful business by doing a lot of hard work.

Royal Enfield became famous globally and developed a research and development centre in London.

VECV set up a truck manufacturing plant in Bhopal for 400 crores.

● 2019-2020

The flagship company of Eicher motors, i.e., Royal Enfield company, sold 697582 motorcycles in the year and made an effort to increase the number of retailers in India and increase its sales of motorcycles in small towns.

Royal Enfield company even introduced 600 studio stores in 2019-2020. It even introduced two new models in the market, i.e., a new version of the Royal Enfield Bullet 350 and classic 350, to increase the accessibility of its customer. 

It even introduced another new model in the last quarter of 2019-2020. The model was Himalayan BS-VI which had a new look and innovative features for which it was successful in India and the whole world.

The Royal Enfield company has spread its retail market in 66 countries and has 77 retail stores outside India.

The company has even opened consumer touch points in Argentina, France, the UK, and Thailand.

Royal Enfield expanded its retail store in the Asia Pacific by opening a store in South Korea.

Royal Enfield completed the establishment of its headquarters in Chennai in the year 2019-2020. 

● 2020

The government of India announced a lockdown because of the rapid spreading of the Coronavirus. It resulted in the closing of operations and production of vehicles. But the company started its production in May 2020 after taking necessary approval.

● 2021

There was a 10 percent sales growth of Royal Enfield motorcycles in 2021.

Last year, i.e., in February 2020, the company sold 69,536 units of Royal Enfield motorcycles n India. But in February 2021, the company sold 69,659 units of Royal Enfield motorcycles in India.

● 2022

The Profit After Tax (PAT)of Eicher Motors was Rs 610 crore between January and March of the year 2022. It was a 16 percent growth compared to Rs 526 crore PAT which the company achieved between January and March of 2021.

Eicher Motors announced revenue of Rs 3193 crore in the fourth quarter of 2021-2022, which was 8.6 percent higher than the revenue in the fourth quarter of 2020-2021.

But unfortunately, the company sold only 182,125 units of Royal Enfield motorcycles in between the period January to March 2022, which was a 10 percent decline compared to the same period in the previous year.

Eicher Motors reported the export of 652 vehicles in March 2022, which was a decline of 25 percent compared to the export of vehicles in March 2021.

Volvo trucks and buses exported 221 units in March 2022, only 167 units in march 2021. So it was a growth of 32.9 percent.

Eicher motors recorded domestic sales of 7929 units in March 2022, which was 6054 units in March 2021. So it was a growth of 31 percent.

The Eicher trucks and buses got Apollo CV awards in April 2022.

Future Plans

The company aims to get 25 percent of revenue from the international market by 2025-2026. Eicher Motors Limited is getting 8-9 percent revenue from the international market.

Eicher motors even plan to work on electric bikes in the future. VECV also plans to bring 5-tonne and 55-tonne electric trucks to market.

Eicher Motors has planned to invest Rs 1500 in the coming three years to manufacture electric vehicles and increase its demand in the market.

Subsidiaries Of Eicher Motors Limited

#1. Royal Enfield

Royal Enfield is a company that manufactures motorcycles in India and has headquarters in Chennai, Tamil Nadu. 

The Royal Enfield motorcycle was first built in 1901 by a company in England. This motorcycle was greatly responsible for producing Royal Enfield Bullet, which was quite famous in the market. Royal Enfield has manufacturing plants in SIPCOT Industrial Park, Oragadam, and Thiruvottiyur.

The company makes classy motorcycles, including Royal Enfield Bullet, Classic 500, Interceptor 650, and various others. It even manufactures off-road vehicles like Royal Enfield Himalayan, which is quite adventurous.

Royal Enfield company discontinued sales of Bullet 500, classic 500, and Thunderbird500 on 31st March 2020 in India. However, the company will continue selling all these motorcycles outside India.

 Royal Enfield company launched a new series of cruiser motorcycles in 2020, which replaced the Thunderbird 350 and 350 X series, which were removed from the market’s shelf. The cruiser motorcycle has a 349cc single-cylinder and has single overhead camshaft system.

#2. Eicher Polaris 

Eicher Motors Limited and Polaris INC established a joint venture for manufacturing vehicles in India. 350crore was invested in setting up a joint company known as Eicher Polaris Private Limited.

Again, Eicher Motors and Polaris INC amalgamated their Rand D work in a new plant in Jaipur, Rajasthan.

The Eicher Polaris launched a vehicle in 2015 known as Multix. The Multix was also called a 3-in-1 vehicle because it can be used for business and family purposes. 

The vehicle was generating 3KW of electricity. So, people used this vehicle also as a power generator. The Multix available in 2015 was of two types. The first one was AX+, and the second one was MX. Both types differ in doorways. The MX had doors, while AX+ had open doorways.

Unfortunately, in 2018 Eicher and Polaris announced that they would be closing the joint venture company and Multix. 

#3. VE Commercial Vehicles Limited

The VE commercial vehicles limited is a 50:50 partnership between Volvo Group and Eicher Motors Limited in 2008. It is a multi-brand company that manufactures Eicher trucks and buses, Volvo buses, and various others. The models of VECV are exported to 34 countries in the world.

#4. Harris Performance Products Limited

Harris Performance is a manufacturer of motorcycles and spare parts in England. It was founded in 1972 by Lester Harris, Steve Harris, and Steve Bayford. 

Harris motorcycles have run in all the famous road racing, which includes Grand Prix, Isle of Man TT, and other road races.

Harris’s performance tied hands with World championship motorsports for producing racing bikes in 2003.

Royal Enfield, a subsidiary of Eicher Motors Limited, acquired this company in 2015. Harris performance had a relationship with Royal Enfield for a long time and was responsible for manufacturing bike Himalayan ADV bike and GT cafe racer.

Discontinued Models of Eicher Motors Limited

#1. Royal Enfield Bullet 500

There were rumours in 2019 that Royal Enfield company would stop its production of Bullet 500. 

These rumours became true in 2020. The company announced that Royal Enfield Bullet 500 would discontinue from the market. The engine of this vehicle had 499cc and a maximum speed of 110Km/hr.

#2. Royal Enfield Classic 500

Royal Enfield Classic 500 is also no more found in the market. The engine of the Royal Enfield classic 500 had the same engine capacity as that of the Royal Enfield Bullet 500. The maximum speed of this motorcycle was 110 Km/hr.

The 500cubic capacity engines like Royal Enfield Classic 500 could not satisfy the BSVI norms. So Royal Enfield decided to discontinue the market.

#3. Royal Enfield Thunderbird 500

Royal Enfield Thunderbird 500 has a cruise appearance, which most people like. Unfortunately, it also had a 500-cc engine. The youngsters who want to go for long rides usually prefer this motorcycle. So, the company decided to discontinue in the market.

#4. Multix

Multix was the three-in-one vehicle introduced in the market by Eicher Polaris private limited in 2015. But because of poor sales, it was discontinued from the market in 2018.

Current Models of Eicher Motors Limited

Eicher Trucks 

#1. Eicher Pro 250

The Eicher Pro 250 has a gross vehicle weight of 5.4 tonnes. The vehicle has a five-speed gear type and produces a torque of 285 NM. The fuel used in this vehicle is diesel.

The loading area of this vehicle is quite good. So, it’s good for transporting goods. The vehicle ensures highly durable materials, giving you a good driving experience.

#2. Eicher Pro 2055

The Eicher Pro 2055 is one of India’s best city trucks for transporting goods. The of this truck is around 6.95 tonnes. It produces a torque of 285NM and 75KW power.

The materials used in this truck are reliable and durable.

#3. Eicher Pro 2055 T DSD

The Eicher Pro 2055 T DSD is a strong and sturdy truck with good features like high payload capacity, good mileage, and others. The gross vehicle weight of this truck is 6.95 tonnes. The vehicle can produce power of 90 KW and torque of 350 NM. The fuel used in this type of truck is diesel.

#4. Eicher Pro 2055 K

Eicher Pro 2055K is one of India’s most reliable mini trucks. The truck has a gross weight of 5.49 tonnes and produces a power of 75 KW. The fuel used in this truck is diesel.

#5. Eicher Pro 2095

The Eicher Pro 2095 is one of the best trucks for doing business in India. It has a five-speed gearbox and can produce a torque of 350NM.

Eicher Bus

#1. Skyline School Bus

The skyline school bus produced by Eicher motors has comfortable seats and tubeless tires so that school students can safely reach their destination. You will find bag trays and bottle hangers under the seat so that school-going students can store all the essentials while traveling on the bus. 

The skyline school buses also have an air conditioning system to comfort school children. The engines of these buses can deliver high power and torque.

The steps of these buses are also low so that the school-going children can comfortably go inside the bus. The bus floors are anti-slippery, so school-going children will have less chance of falling on the bus.

#2. Star Line School Bus

The Starline school bus has almost the same features as a skyline school bus. The star line school bus also has low steps and anti-slippery floors and has provision to keep school bags and bottles under the seat.

Royal Enfield

#1. Royal Enfield Bullet 350

The Royal Enfield Bullet 350 has a 346cc four-stroke air-cooled engine and is also integrated with a five-speed gear transmission system. This motorcycle can give you a comfortable ride in your city.

#2. Royal Enfield Interceptor 650

The Royal Enfield Interceptor 650 was introduced in the year 2018. It is the first motorcycle launched by the company, which has a twin-cylinder. The Royal Enfield Interceptor has a maximum speed of 170Km/hr and an engine of 648cc. Its price varies from 2.82 to 3.15 lakhs.

#3. Royal Enfield Continental GT 650

The Royal Enfield Continental GT 650 has a 648cc engine, a six-speed gearbox, and a maximum speed of 161Km/hr. 

It has disc brakes in front and rear. But the rear brakes are equipped with ABS (Antilock braking system). Fortunately, five different continental GT 650 are available on the market.

#4. Royal Enfield Classic 350

The Royal Enfield Classic 350 is a cruiser bike in India. The motorcycle has a 349cc BSVI engine and can produce a power of 20.2bhp. Its starting price is Rs 1,90,2025.

#5. Royal Enfield Meteor

The Royal Enfield Meteor is a cruiser bike that is manufactured in India. It is a motorcycle that directly replaces Thunderbird 350 in the market. The engine of this motorcycle is 349cc. The maximum speed of this vehicle is 120Km/hr.

#6. Royal Enfield Himalayan

The company made the prototype of the Royal Enfield Himalayan in 2014. But the motorcycle was finally released in 2016 in India. Later it was introduced in the United States, Australia, and the Philippines. 

The models released in India and overseas have electronic fuel injection and ABS systems and are adored because of their excellent suspension system and running excellently off-road. 

The early Royal Enfield Himalayan had some prediction issues. But people criticized this motorcycle because of its low power output. Some people even complained that the motorcycle parts were not of good quality.

The Royal Enfield company finally responded to customers and, in 2018, declared that it is taking steps to increase this motorcycle’s quality.

Finally, in 2021 the upgraded model of the Royal Enfield Himalayan was introduced in the market. The new model has some exciting features like google maps power it 

#7. Royal Enfield Scram 411

Royal Enfield scram is an adventurous bike whose price starts from Rs 2,03,259. The motorcycle has a 411cc BSVI engine and can develop a power of 24.3bhp. The maximum speed of this vehicle is 140Km/hr. 

A Few Final Words

Eicher motors are pretty famous today for the production of trucks and buses and mainly for Royal Enfield motorcycles. Eicher Motors is planning to produce electric vehicles in the future. Electric vehicles will not emit any pollutants that will harm the atmosphere. 

The Royal Enfield company has even planned to launch eight bikes in 2022-2023.

I hope this article has given some vital information about Eicher motors limited. 

Thank you for reading the entire article, and if possible, share it on Facebook, Instagram, or any online platform so that many people can read the article.

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