Shangliao Sun
Research expert covering India
The Indian automotive industry has been dominated by two-wheeler production over the past few years. In financial year 2023, two-wheelers accounted for almost 75 percent of the market. Despite having a market share of just four percent, commercial vehicles were a crucial part of the industry. In 2023, commercial vehicle sales hit a post pandemic peak, with over 960 thousand vehicles being sold. Tata Motors was the leading manufacturer of commercial vehicles that year, accounting for a share close to 40 percent.
History of Eicher Motors
Eicher Motors Limited (EML) is a motorcycle and commercial vehicle manufacturer based in New Delhi, India. Its history dates back to 1948. In 2008, Eicher formed a joint venture with the Swedish automotive manufacture Volvo Group. The company was rebranded to Volvo Eicher Commercial Vehicles Limited (VECV). The latter owns five business units – Eicher Trucks and Buses, Volvo Trucks India, Eicher Engineering Components and VE Powertrain. Royal Enfield Motors, the manufacturer of the motorcycle Bullet is a subsidiary of EML.Financial performance of Eicher Motors
In 2023, EML recorded sales more than 144 billion Indian rupees. In the commercial vehicle segment, VECV sold around 62.6 thousand units in 2023, ranked the fourth largest commercial vehicle manufacturers in the country. In recent years, the commercial vehicle sector in India has been hit hard by the general economic slowdown and the coronavirus pandemic. After the pandemic ended, however, the company quickly rebounded, and in 2023, it posted its best financial year in nearly a decade.
