Eicher Motors Limited, a motorcycle and commercial vehicle manufacturer. Since this JV in 2008, Eicher was rebranded to Volvo Eicher Commercial Vehicles Limited, with the Swedish counterpart owning over 45 percent of 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.
In 2019, EML recorded sales worth 98 billion Indian rupees, and was projected to reach almost 116 billion rupees by 2022. The commercial vehicle segment VECV sold around 3.8 thousand units in October 2019 alone, with about 915 dealers across the country. Despite entering this segment only in 2002, Volvo-Eicher had a share of just over six percent of the market in 2019.
Despite these optimistic numbers, the economic slowdown in India had affected the sales in the automotive sector, with commercial vehicles being worst hit. Inventory levels touched 60 days as opposed to the norm of two-three weeks. The sluggish progress prompted truck makers to resort to heavy discounts in order to boost sales. Heavy discounting by market leaders, such as Ashok Leyland and Tata Motors, had an adverse affected on smaller rivers such as EML and Daimler India.
The new era of emission standards, to be released in April 2020, could presumably make life difficult for commercial vehicle manufacturers. In 2018, the trucks and buses segment of the VECV group had already launched new CNG variants for its Pro 1000 series to reinforce the company’s green portfolio. Although Ashok Leyland became the first Indian manufacturer to get certification of the emission standards for its full range of heavy-duty trucks, future environmental regulations were likely to mount up the pressure on vehicle manufacturers. In 2019, the VEVC group also released a new range of light duty trucks that comply with the new emission standards.