PILLAI COLLEGE OF ARTS ,COMMERCE AND

SCIENCE (2021-2022)

SUBJECT : CORPORATE COMMUNICATION

&

PUBLIC RELATIONS

PROJECT TITLE : CASE STUDY ON EICHER MOTORS

NAME : PRAMAYA MORE
ROLL NO. :8650
CLASS : TYBMS
DIVISION : ‘C’
OVERVIEW OF COMPANY

Eicher Motors Limited  is an Indian  multinational  automotive company that

manufactures motorcycles and commercial vehicles, headquartered in New Delhi. Eicher is
the parent company of Royal Enfield, a manufacturer of middleweight motorcycles. In addition
to motorcycles, Eicher has a joint venture with Sweden's Volvo Trucks - VE Commercial
Vehicles Limited (VECV).

HISTORY OF EICHER MOTORS

Eicher Motors is a commercial vehicle manufacturer in India. The company's origins date back
to 1948, when Goodearth Company was established for the distribution and service of imported
tractors. In 1959 the Eicher Tractor Corporation of India Private Ltd was established, jointly with
the Eicher tractor company, a German tractor manufacturer. Since 1965, Eicher in India has been
completely owned by Indian shareholders. The German Eicher tractor was partly owned
by Massey-Ferguson from 1970, when they bought 30%. Massey-Ferguson bought out the
German company in 1973.

In 2005, Eicher Motors Ltd sold their tractors and engines business to TAFE Tractors (Tractors
and Farm Equipment Ltd) of Chennai, the Indian licensee of Massey Ferguson tractors.

In October 1982, a collaboration agreement with Mitsubishi for the manufacture of light

commercial vehicles (LCVs) was signed in Tokyo and in the same period the incorporation of
Eicher Motors Limited also took place. LCVs were sold under the "Eicher Mitsubishi" brand. In
February 1990, Eicher Goodearth bought 26% stake in Enfield India Ltd and by 1993 Eicher
acquired a majority stake (60% equity shareholding) in Royal Enfield India.

In July 2008, EML and Volvo Group's 50:50 joint venture VE Commercial Vehicles (VECV)
designs, manufactures and markets commercial vehicles, engineering components and provides
engineering design.

At present, Volvo Group owns 45.6% of VECV,[2] although there are 122 other institutional

investors on record. In 2020 VECV bought Volvo Buses India operations for 100 crores.

GROUP STRUCTURE

The Eicher Group has diversified business interests in design and development, manufacturing,
and local and international marketing of trucks, buses, motorcycles, automotive gears, and
components. Eicher has invested in the potential growth areas of management consultancy
services, customised engineering, and maps and travel guides.

VE Commercial Vehicles (VECV) Limited is a joint venture between Volvo Group and Eicher

Motors Limited (EML). VECV is divided into five business units.

 Eicher Trucks and Buses

 Volvo Trucks India
 Eicher Engineering Components
 VE Powertrain

Royal Enfield Motors, the motorcycle manufacturing subsidiary, is a part of Eicher Motors.
CORPORATE IMAGE

Eicher Motors Limited (EML) (Bloomberg: EIM IN Reuters: EICH.NS) is the listed parent of
Royal Enfield, the global leader in middleweight motorcycles. The world's oldest motorcycle
brand in continuous production, Royal Enfield has made its distinctive motorcycles since 1901.
Focussed on bringing back simple, yet engaging and accessible motorcycling, Royal Enfield
operates in India, and over 60 countries around the world with modern development facilities in
Leicestershire, UK and Chennai, India. Royal Enfield makes its motorcycles in Chennai, Tamil
Nadu for the world. Royal Enfield has evolved into an experiential brand. Royal Enfield with its
motorcycle that combines modern-day elements with the brand's heritage, garners immense
enthusiasm amongst global motorcyclists

In addition to motorcycles Eicher has a joint venture with Sweden's AB Volvo - Volvo Eicher
Commercial Vehicles Limited (VECV) - has pioneered modernisation of commercial vehicles in
India and other developing countries.VECV has a complete range of trucks and buses from 49-
55 tonnes and its integrated manufacturing plant in Pithampur, Madhya Pradesh is the global hub
for medium duty five- and eight-litre engines for Volvo Group.

Eicher Motors is listed on the BSE and National Stock Exchange and has been part of the NSE's
benchmark Nifty 50 Index since April 1, 2016.

PROJECTS RESPONSIBLE FOR SUCCESS OF EICHER MOTORS IN THE MARKET

TO BUILD A STRONG CORPORATE IMAGE.

Royal Enfield
The oldest motorcycle brand in continuous production, Royal Enfield made its first motorcycle
in 1901. A division of Eicher Motors Limited, Royal Enfield has created the mid-sized
motorcycle segment in India with its unique and distinctive modern classic bikes. With its new
manufacturing base in Chennai, India, Royal Enfield is able to grow its production rapidly
against a surge in demand for its motorcycles. With more than 40% growth every year for the
last 5 years, Royal Enfield is fast becoming a very important player in the global mid-size
motorcycle market and is working towards re-inventing this space with motorcycles that are
evocative and engaging and great fun to ride.
Royal Enfield’s motorcycle line-up includes the newly launched Interceptor 650 and the
Continental GT 650, powered by a modern 648cc twin cylinder engine. Royal Enfield also
manufactures the Classic, Bullet and Thunderbird models in 350 and 500cc displacement and the
purpose-built adventure tourer - Himalayan, powered by the new LS410 engine. Royal Enfield
operates through 18 company-operated stores and 850+ dealers in all major cities and towns in
India, and exports to over 50 countries across the world including the USA, UK, several
European and Latin American countries, as well as the Middle East and South-East Asia.

Royal Enfield also organizes and supports many motorcycling events and rides globally, more
prominently the Rider Mania – an annual gathering of Royal Enfield riders from all over the
world to the lovely beaches of Goa, and the Himalayan Odyssey, the most arduous motorcycle
ride over some of the toughest roads and highest mountain passes in the Himalayas. Royal
Enfield also conducts the popular ‘One Ride’ where people around the world ride out on their
motorcycles on the first Sunday of April.

VE Commercial Vehicle Limited

VE Commercial Vehicles Limited (VECV) is a joint venture between Eicher Motors Limited and
the Volvo Group. In operation since July 2008, the company includes the complete range of
Eicher branded trucks and buses, VE Powertrain, Eicher’s components and engineering design
services businesses, the sales and distribution business of Volvo Trucks as well as aftermarket
support to Volvo Buses in India. VECV vision is to be recognized as the industry leader driving
modernization in commercial transportation in India and the developing world.

The first Eicher truck was rolled out from its manufacturing plant at Pithampur, Madhya Pradesh
in 1986, and after completing 33 years of operations in June 2019, the products have got
endorsement from happy customers of over 7,41,786 vehicles.4

Eicher is a leading player in 4.9T – 16T segment with Eicher Pro 1000, Pro 2000 & Pro 3000
series of LMD trucks specifically designed to deliver a breakthrough trucking experience in
India. Eicher’s 12-69 seater buses have a growing presence in the LMD school bus, staff and
route-permit segments. ETB has also made strong inroads into heavy-duty trucks segment of 16T
- 55T with Pro 5000, Pro 6000 & Pro 8000 series of HD Trucks.
CORPORATE REPUTATION

Eicher Motors was incorporated in the year 1982 which is the Flagship of the Eicher group.
It is one of the leading players in the Automobile Industry and oldest brand in the Industry
of Automobiles with its operations and branches spread across the leading global
automotive markets. They are one of the fastest growing Automobile brands in India.

Financial Reputation In The Market

For the quarter ended 31 December 2019, Eicher Motors’s total revenue from operations was at
Rs. 2,371 crores, up by 1% as compared to Rs. 2,341 crores in the corresponding quarter of FY
2018-19; EBITDA was Rs. 592 crores, down 13% as compared to Rs. 680 crores in the same
quarter of the previous financial year; Profit After Tax was Rs. 499 crores as compared to Rs.
533 crores during the same period last year. Royal Enfield sold 189,143 motorcycles in the
quarter, a decline of 2% from 193,164 motorcycles sold over the same period in the last financial
year.

Commenting on Eicher Motors’ performance, Siddhartha Lal, Managing Director of Eicher

Motors Ltd, said, “We’ve remained focused on its long term strategy. Eicher Motors has
improved its retail network to bring in further accessibility. We’ve worked on transitioning its
product portfolio to comply with the new BS-VI emission norms and also launched the new
Royal Enfield Himalayan BS-VI. The 650 Twin motorcycles continue to enthrall global
audiences, as the Interceptor 650 has been awarded ‘Bike of the Year’ by Motorcycle Cruiser
magazine and Continental GT 650 has received 2019 best looking Naked / Standard Motorcycle
of the year from Motorcyclist Magazine, both leading publications in the USA. While the
commercial vehicle industry continues to face challenges due to slowdown, VECV remained
profitable despite a sharp decline in its volume.”

Royal Enfield continues to strengthen its distribution network in India and across the world.
During the last quarter, Royal Enfield added 7 new large format stores and 250 new Studio
Format stores in India, taking the total to 1,400 retail touchpoints. In international markets, Royal
Enfield added new stores across Thailand, Brazil, Argentina, France and the UK, increasing its
overall touchpoints to about 675 stores including 67 exclusive stores. This network expansion,
combined with sustained Brand and Marketing initiatives, have more than tripled sales outside
India.

For the quarter ended 31 December 2019, VECV’s revenue from operations was Rs. 2,164
crores, down by 23% from Rs. 2,818 crores in the same period last year; EBITDA was Rs. 133
crores, down 28% as compared to Rs 186 crores in the corresponding quarter of the previous
year. Profit After Tax was Rs. 30 crores as compared to Rs. 76 crores during the same period last
year. VECV sold 12,391 trucks and buses in the quarter, a decline of 27% from 16,936 trucks
and buses sold over the same period in the last financial year.

Social Reputation

EICHER GROUP PLEDGES SUPPORT TO FIGHT COVID-19 PANDEMIC

● Commits an initial outlay of INR 50 crores towards COVID-19 relief and support measures;
Likely to increase spends over the next few months.

● Efforts dedicated to providing a slew of immediate relief initiatives along with medium and
long-term rehabilitation support.

● Initiatives to include relief and sanitization material for communities, providing protective and
medical equipment to Government and private hospitals, and contributing to govt relief funds.
CORPORATE IDENTITY

Even as the commercial vehicles industry is rebounding back to positive growth after 8 months
of a slowdown, VE Commercial Vehicles, a 50:50 JV between Sweden’s Volvo Group and
India’s Eicher Motors on Tuesday released a new corporate identity for the company as part of a
rebranding exercise. The JV which came into existence, same time last year, is now seeing a
demand for heavy vehicles rising in the industry.
"The industry is witnessing a steady increase in demand in the cargo segment after about 8
months of a decline due to the global economic slowdown. The passenger segment however has
been on a steady growth path due to the government orders especially in the school segment and
because of the JNNURM scheme," said Somnath Bhattacharjee, Executive Vice President, Sales,
Marketing & After-market, VE Commercial Vehicles and President, Volvo Trucks India.
The commercial vehicles market in India stands at about 325,000 unit sales per year. Pre-
slowdown, the market was growing at about 20% per annum. Post slowdown, sales for the
industry had dipped almost 40% month on month,compared from previous fiscal.
Volvo Trucks in India has a market share of 70% in the premium European truck segment.
Eicher Trucks has a market share of 30% in the light/medium duty cargo segment and about 10%
in the passenger segment. A new logo comprising blue and red colors representing Volvo and
Eicher respectively was launched as part of the corporate identity makeover.
While Eicher vehicles are indigenously manufactured in India near Indore, Volvo trucks are
assembled near Bangalore from parts imported from Sweden. Scania and Mercedes are major
competitors of Volvo in the premium European vehicles imported into India.

OUTCOME
A Great Brand always intents to symbolize the brand in many ways and produce a standard
which would never make the customer forget the it through the tiny and little things of
Interior and exterior signage and retail designing. EICHER MOTORS has continuously
been making affords to achieve that goal and has been successful in doing that. Hence, I
choose Eicher Motors as my project topic.

THANK YOU!