Eicher Motors Ltd Management Discussions

ECONOMIC OVERVIEW

Indian Economy

India remained among the worlds fastest-growing economies in FY 2024-25, with GDP growth pegged at 6.5%, as per the Second Advance Estimates of National Income from the Ministry of Statistics and Programme Implementation (MoSPI). This followed a record 9.2% growth in FY 2023-24, led by manufacturing, construction, and financial services. The moderation reflected a stabilisation after a high-growth. Inflation averaged 5.1%, with the RBI cutting the repo rate to 6.25% in February 2025 to support growth while managing inflation. The Index of Industrial Production (IIP) experienced growth in key sectors, while GST collections remained strong. The Manufacturing Purchasing Managers Index (PMI) also indicated positive manufacturing activity. Per capita income continued to increase. The CPI inflation also eased down to 3.34% in March 2025, as per RBIs Bulletin for March 2025.

Global Economy

Global economic growth remained subdued in calendar year 2024, with the International Monetary Fund (IMF) outlining a modest expansion of 3.3%, consistent with the previous year. This stagnation was attributed to persistent challenges such as elevated inflation, high interest rates, and ongoing geopolitical tensions. These factors continued to dampen consumer sentiment and investment activities across various regions.

Inflation rates showed signs of moderation globally. Signs of stabilisation were emerging through much of 2024, after a prolonged and challenging period of unprecedented shocks. Inflation, down from multidecade highs, followed a gradual decline toward central bank targets. In our key International markets such as the USA, UK, Europe, Australia & New Zealand the Inflation rate, although moderating, remained

higher than the targeted range of central bank targets. In the key emerging countries such as Argentina and Brazil the inflation remained high, as per IMF, and resulted in an increase in interest rates as well as selective controls on Foreign exchange flows.

INDUSTRY OVERVIEW

Indian Two-Wheeler Industry

According to the Society of Indian Automobile Manufacturers (SIAM), the two-wheeler industry sustained its recovery trajectory, registering a robust growth of 9.1% in domestic sales, reaching 19.6 Million units in FY 2024-25. This growth was primarily driven by improved rural demand and a resurgence in consumer confidence. Within the two-wheeler industry, the scooters segment grew by 17.4% and the motorcycles segment grew by 5.1% in FY 2024-25 to 12.3 Million units. The motorcycles in the above 125cc segment grew by 6.7%, reaching a total of 3.0 Million units, which now accounts for 24.4% of the overall motorcycle market, compared to 24.1% in the fiscal year 2023-24.

The above 250cc segment grew by 9.9% in FY 2024-25 to 1.0 Million units and is now 8.5% of the overall motorcycles (8.1% in FY 2023-24). Electric two-wheelers also gained significant traction growing 21.6% to 1.2 Million units with their share in overall two-wheeler sales reaching 6.7% during the fiscal year.

However, the two-wheeler segment as a whole is yet to reach the pre-pandemic levels as the industry navigates through higher costs of ownership and sharp increase in input costs.

Global Motorcycle Industry

The global motorcycle industry reached a new all-time high in 2024, with 61.8 Million units sold, a 2.7% year-on- year growth, despite macroeconomic uncertainties and geopolitical disruptions. This growth was led by India (+14.1%), with strong performances also seen across Latin America and Central America, including Brazil, Mexico, and several Central American markets as per the Motorcycles Data (McD). Western and Eastern Europe recorded healthy growth, with Turkey and the UK contributing significantly. North America saw record sales, driven by Mexicos robust demand. In contrast, sales declined in China (-13.7%) and ASEAN markets (-1.8%), indicating a shift in global demand centres.

As per Society of Indian Automobile Manufacturers (SIAM), Two-wheeler exports experienced a commendable growth of 21.4% compared to the previous year, totalling 4.2 Million units. This expansion was facilitated by new model introductions, exploration of new markets, and economic stability in regions like Africa and Latin America.

COMPANY OVERVIEW

Eicher Motors Limited (EML) (Bloomberg- EIM: IN) is a leading Indian multinational automotive company, listed on the BSE and NSE, with diversified interests in motorcycles and commercial vehicles. EML owns Royal Enfield, the worlds oldest motorcycle brand in continuous production since 1901, and a pioneer in shaping the mid-size motorcycle segment in India. In addition to its motorcycle business, EML owns 54.4% stake in VE Commercial Vehicles Limited (VECV), a joint venture with the Volvo Group of Sweden, a global leader in commercial vehicles.

About Royal Enfield:

Royal Enfield has a rich legacy of over a century, combining timeless design with modern engineering to deliver motorcycles that are engaging, accessible, and rooted in the brands Pure Motorcycling ethos. Its portfolio features a wide range of motorcycles, including the Meteor 350, Super Meteor 650, Interceptor 650, Continental GT 650, Shotgun 650, Guerrilla 450, Classic 650, Himalayan 450, Scram 440, Classic 350, Bullet 350, Hunter 350 and Goan Classic 350 and Bear 650. The brand has cultivated a vibrant global community of riders through signature events like Motoverse in Goa and the Himalayan Odyssey, promoting exploration and connection. With around 2,000 retail outlets in India and a growing presence in more than 60 countries through 1,130+ international stores, Royal Enfield operates with a strong global footprint. It also boasts two state-of-the-art product development centres in Chennai (India) and Bruntingthorpe (UK), along with modern manufacturing facilities in Oragadam and Vallam Vadagal, and CKD assembly units in Nepal, Brazil, Thailand, Argentina, Colombia, and Bangladesh.

The brand has cultivated a vibrant global community of riders through signature events like Motoverse in Goa and the Himalayan Odyssey, promoting exploration and connection. With around 2,000 retail outlets in India and a growing presence in more than 60 countries through 1,130+ international stores, Royal Enfield operates with a strong global footprint.

About VE Commercial Vehicles Ltd (VECV):

VECV, the joint venture between Eicher Motors and the Volvo Group, has been in operation since 2008. The company offers a wide range of commercial vehicles under the Eicher brand, along with Volvo Buses, and exclusively distributes Volvo Trucks in India. VECV also supports engine manufacturing and export for the Volvo Group, while operating divisions such as Eicher Power Solutions and Eicher Engineering Components. Known for its commitment to innovation and reliability,

VECV has played a key role in modernising commercial transportation in India and other developing markets.

Board changes at EML

In FY 2024-25, EML announced key changes to strengthen leadership. Siddhartha Lal was appointed as Executive Chairman of the Board, succeeding S. Sandilya. In addition, the board also appointed Vinod Aggarwal as the Vice Chairman (Non-Executive) and B. Govindarajan as the new Managing Director of EML while retaining their roles at VE Commercial Vehicles and Royal Enfield respectively. The board also welcomed Ira Gupta and Arun Vasu as Independent directors following the retirement of Manvi Sinha. These changes in governance reflect Eichers commitment to strategic continuity and excellence. With said appointments, the total Board strength of the Company is eight Directors, out of which five are Independent Directors.

FY 2024-25: Another great year for Royal Enfield

Royal Enfields enduring 124-year legacy continues to be defined by its ability to remain distinctively original, built on a deep understanding of motorcycling and its riders. The brands fierce individuality, combined with a clear sense of purpose,

has shaped a differentiated approach that lives through its products, services and community-led experiences. This strong foundation has allowed the Company to consistently deliver on its promise of Pure Motorcycling across the world.

In FY 2024-25, Royal Enfield sustained its robust growth trajectory and delivered a strong performance, underscoring its resilience, customer trust, and product strength. The Company achieved its highest-ever sales volumes, delivering 10,02,893 motorcycles globally. In the domestic market, Royal Enfield sold 9,02,757 units of motorcycles - marking a new milestone and surpassing its previous peak of 8,34,794 units recorded in FY 2023-24.

Volume & market share performance

	FY 2023-24	FY 2024-25
RE volumes - India	8,34,794	9,02,757
REs market share in Motorcycles	7.2%	7.4%
REs market share in >125cc	29.4%	30.1%
REs market share in Midsize	88.5%	87.1%
(250-750cc)

In the international markets, Royal Enfield recorded sales of 1,00,136 units. While macroeconomic challenges continued to persist in some global regions, the Company remained focussed and made significant headway in strengthening its presence and reach across priority markets. Strategic brandbuilding initiatives, retail expansion, and sustained community engagement helped Royal Enfield deepen its foothold in existing geographies and explore new ones.

REBALANCE - A STRATEGIC LONG-TERM VISION

Royal Enfield continues to stay firmly anchored to its purpose, mission and values through REBALANCE - a strategic framework designed to enhance long-term business resilience. As the external environment evolves, REBALANCE reflects the Companys intent to recalibrate its mission and renew its commitment to building an agile, future-ready and enduring business. Rooted in the philosophy of Pure Motorcycling, this approach seeks to bring harmony between the rider, the machine and the terrain.

The REBALANCE strategy is built on four core pillars:

Royal Enfield introduced the Guerrilla 450 in July 2024 - a spirited modern roadster built on the new Sherpa 450 platform. Engineered for visceral responsiveness and dynamic road presence, the Guerrilla is a powerful and agile motorcycle tailored for urban agility and weekend exploration. The 452cc liquid- cooled DOHC engine delivers 40 PS and 40 Nm, tuned for accessible power across the rev range, while a newly developed steel twin-spar chassis ensures responsive handling and stability.

The Guerrilla 450 further reinforces Royal Enfields strength in the roadster segment. Since its launch, the Guerrilla has received strong traction among younger riders across India and Europe.

Continuing its legacy as one of Royal Enfields most iconic motorcycles, the Classic 350 was relaunched in August 2024 in a refreshed avatar. With upgraded features including LED headlamps, USB-C charging port and Tripper Navigation, the Classic stays true to its timeless design while embracing subtle modern enhancements. Seven new colourways across five distinct variants further enhance its appeal. Royal Enfield also launched the Factory Custom Programme, offering firsttime personalisation services to Classic 350 customers - a significant step towards bespoke motorcycling. The updated Classic continues to remain a strong volume driver across domestic and international markets.

Launched at Motoverse 2024 in Goa, the Goan Classic 350 is Royal Enfields tribute to the custom counterculture of the 70s and 80s. A bobber- inspired derivative of the Classic platform, the Goan Classic delivers laid-back ergonomics, a single floating seat, chopped fenders and retro whitewall tyres. Equipped with the same refined 349cc engine as the Classic, the Goan Classic offers smooth power delivery with a bohemian twist. With four colourways, modern touches like LED lighting, and a strong connection to Goan heritage, the Goan Classic broadens Royal Enfields lifestyle motorcycle portfolio and has resonated well with riders seeking individuality and aesthetic expression.

BEAR 650 - SCRAMBLER WITH SOUL

Inspired by the legendary Big Bear Run and its youngest champion, Eddie Mulder, the Bear 650 was introduced in November 2024 as a rugged, soul-stirring scrambler.

Based on the award-winning 650cc platform, the Bear 650 features a revised chassis,

2-1 exhaust system, dualpurpose tyres and 184 mm of ground clearance. The motorcycle is engineered to offer an authentic scrambler experience, both in design and performance. Equipped with modern elements such as LED lighting, Tripper Dash and the Wingman Connectivity Suite, the Bear 650 blends vintage aesthetics with modern-day usability. The model has been well received globally for its unique blend of heritage and performance.

SCRAM 440 - BORN FROM ADVENTURE, TUNED FOR PLAY

In January 2025, Royal Enfield launched the Scram 440 - a versatile ADV crossover that bridges urban commuting with all-terrain play. Built on the new LS 440 engine platform, the Scram 440 features a 443cc long-stroke engine, 6-speed gearbox, switchable ABS and dual-purpose tyres. With upright ergonomics, LED lighting and a low seat height of 795 mm, the motorcycle offers enhanced accessibility and fun for both new and seasoned riders. The Scram 440 is positioned as an everyday motorcycle with serious weekend capabilities. The model has attracted interest from adventure- seekers looking for a nimble yet capable machine in the entry-level ADV space.

CLASSIC 650 - DOUBLE THE CHARACTER, DOUBLE THE CHARM

At EICMA 2024, Royal Enfield launched the much-loved and eagerly anticipated Royal Enfield Classic 650.

The magnum opus in Royal Enfields stable, the new Classic 650 is a super-sized version of the iconic silhouette of Classics from the past and stays true to the genetic traits of the Classic family. Its stately, streamlined form is propelled by Royal Enfields acclaimed 650 Twin engine, resulting in a ride that is both swift and graceful. While staying true to traits of the Classic family, the Classic 650 offers riders a powerful new blend of old-school aesthetics and effortless power delivery. Imposing to look at, but friendly to ride, this is unmistakably a Classic that stays pure to the core.

PRODUCT INNOVATIONS & GEAR

Bullet 350 - Battalion Black

Building on its legacy, Royal Enfield launched the Battalion Black edition of the iconic Bullet 350. Featuring timeless design cues like a bench seat, hand-painted gold pinstripes, chrome rims and classic badges, this variant celebrates the enduring spirit of the Bullet and its strong community following.

Tubeless wheels for Himalayan 450

Royal Enfield elevated its flagship adventure tourer, the Himalayan 450, with the introduction of wire-spoked tubeless wheels, now available as part of the Make it Yours (MiY) programme and Genuine Motorcycle Accessories. Designed to enhance off-road capability and deliver a hassle-free adventure experience, this upgrade reinforces the Himalayans position as a benchmark in the adventure segment.

Crossroader - Dual sport titanium jacket

Marking a first for India, Royal Enfield introduced the Crossroader, a dual-sport riding jacket equipped with 100% titanium sliders for enhanced abrasion resistance. CE-certified and purpose-built for high-performance touring, the jacket offers superior ventilation, KNOX Microlock Level 2 protection, and modular all-weather adaptability, further reinforcing the brands commitment to rider safety.

Womens wear collection

Furthering inclusivity in motorcycling, Royal Enfield launched its first-ever exclusive Womens Wear Collection. The line

includes sustainable riding jackets made from 75 recycled PET bottles, along with premium helmets, gloves, and lifestyle apparel. This initiative celebrates and empowers the growing community of women riders while supporting the brands sustainability goals.

Connected & Rider-Centric Technology

Royal Enfieldx SENA - Advanced Rider Communication

Strengthening its focus on connected motorcycling, Royal Enfield collaborated with SENA, a leader in motorcycle communication systems, to launch the co-branded 50S Mesh Communicator. Built on SENAs Mesh 2.0 technology, the device enables seamless rider-to-rider connectivity, particularly enhancing the cruiser experience on models like the Super Meteor 650. This launch reaffirms the Companys commitment to building a digitally connected and immersive riding ecosystem.

Royal Enfieldx Qualcomm - Next-Gen Connected Platform

Flying Flea, Royal Enfields experimental sub-brand, partnered with Qualcomm Technologies to integrate its Snapdragon? QWM2290 SoC and Car-to-Cloud platform into its upcoming motorcycle line. This innovation enables a deeply connected, software-defined riding experience via a proprietary round TFT cluster. With real-time control, cloud connectivity, and on- device intelligence, the development represents a significant leap in Royal Enfields long-term vision of platform-driven, connected two-wheel mobility.

BRAND

MOTOVERSE 2024 : DEEPER ROOTS WIDER REACH

Held in Goa, Motoverse 2024 continued to serve as Royal Enfields flagship motorcycling festival, drawing close to 10,000 enthusiasts from across the globe. This years edition expanded the brands engagement with deeper experiential formats and wider product showcases. Headlining the event was the launch of the Goan Classic 350, celebrating Goas iconic 70s and 80s moto-culture, along with the surprise debut of the Scram 440, a versatile urban-meets-adventure crossover. A new flat track motorcycle, the FT450, based on the Guerrilla platform, made its first public appearance, kicking off the Slide School Cup in India and further fuelling the brands motorsport ambitions.

Motoverse 2024 also introduced new formats such as Revved Up Runway, a fashion show built around Royal Enfield Apparel, the debut of Motobrew in collaboration with Goa Brewing Co., and immersive community spaces like MotoReel and Art of Motorcycling featuring speakers, workshops and art from over 12 countries. With a sharp rise in international participation and first-time attendees, Motoverse reaffirmed its position as a cornerstone of Royal Enfields brand-building and rider engagement strategy.

SPOTIFY X ROYAL ENFIELD: FUSION OF MUSIC AND MOTORCYCLING

Strengthening the cultural resonance of music and motorcycling, Royal Enfield deepened its collaboration with Spotify to celebrate World Music Day and World Motorcycling Day 2024. Through flagship events like RADAR and RAP 91, the partnership spotlighted Indias indie and hip-hop talent while offering immersive motorcycling experiences. Royal Enfield further activated the collaboration at Motoverse 2024, with live performances and interactive zones, and amplified reach through Spotifys premium audio innovation tools like The Stage and Dynamic Audio Ads - building deeper, contextual engagement with Indias youth.

EICMA 2024: FAST-FORWARD. REWIND.

At the prestigious EICMA Motor Show 2024 in Milan, Royal Enfield showcased a powerful mix of heritage and innovation. The company introduced Flying Flea - its first-ever electric vehicle brand - an expression of Royal Enfields commitment to keep moving forever forward. Operating at the intersection of technology and lifestyle, Flying Flea is a new brand of electric vehicles that continues a legacy of innovation and creates a new category for the global electric motorcycle marketplace and beyond. Flying Flea unveiled its first model at EICMA 2024 - the Classic-styled Flying Flea C6. It also announced plans to introduce a Scrambler-styled Flying Flea S6 subsequently.

Simultaneously, the brand expanded its 650cc portfolio with two new models for Europe - the Classic 650 and the Bear 650 - infusing old-school elegance and scrambler spirit into the global mid-size segment. Several design collaborations including the Shotgun 650 x ICON and Guerrilla 450 x El Solitario Prometeo custom builds demonstrated Royal Enfields growing influence in global motorcycling and custom culture.

MARQUEE RIDES AND EVENTS

1. Royal Enfield Continental GT Cup - Season 4

The 2024 Royal Enfield Continental GT Cup, presented by JK Tyre, reinforced the brands commitment to grassroots racing and rider development in India. The introduction of the Twin Power Trophy, which paired professionals with amateur riders, added a new dimension of mentorship and competitive camaraderie. The season concluded at the Kari Motor Speedway with Navneeth Kumar and Yogesh P clinching top honours in the professional and amateur categories respectively, while the Twin Power Trophy was secured by Navneeth Kumar and Johnson Saldanha.

With enhanced format, larger participation, and deeper engagement, Season 4 continues to build Royal Enfields Pure Sport proposition - encouraging inclusivity, nurturing talent and amplifying Indias presence on the global motorcycling stage.

2. Himalayan Adventure Tibet

Royal Enfield curated the Himalayan Adventure Tibet ride from May 12-26, 2024 - one of the most anticipated events on the all-new Himalayan. Traversing Nepal and venturing deep into the ancient, spiritual landscapes of Tibet, the ride offered a rare opportunity to explore the regions unique culture and geography. Designed for serious riders and explorers, it reinforced Royal Enfields focus on immersive adventure riding.

3. World Motorcycle Day 2024

To mark World Motorcycle Day, Royal Enfield organised city rides across six metros - Delhi, Mumbai, Pune, Bengaluru, Hyderabad, and Chennai - with participation from 12 hyper-local influencers. Held on June 22-23, the rides included motorcycle races and maze chases, creating a vibrant motorcycling experience that deepened community connect and engagement.

4. 20^th edition of Himalayan Odyssey

Royal Enfield commemorated the 20^th edition of the Himalayan Odyssey with an 18-day, 3,050 km expedition to Umling La and Siachen Base Camp. With 122 riders from across the globe, the ride concluded in Leh with the inaugural Great Himalayan Adventure Festival, celebrating motorcycling and sustainable travel in the high Himalayas.

5. Hunter Day Ride

Celebrating two years of the Hunter 350, Royal Enfield organised the nationwide Hunter Day ride across 700+ cities. With over 8,000 participants and exclusive experiences in Chennai and Gurugram, the event highlighted the Hunters growing urban rider base and cemented its role as a key lifestyle offering.

6. Himalayan Adventure Changthang

The Himalayan Adventure Changthang returned as a high-altitude expedition through Ladakhs remote Changthang plateau. Known for its rugged terrain and dramatic landscapes, the ride continues to offer seasoned motorcyclists an uncompromising adventure through one of the most isolated regions of the Himalayas.

7. Uncover North East

The 2024 edition of Uncover North East, designed for the Meteor 350, combined motorcycling with music through a curated route to Ziro for the renowned Ziro Festival. Spanning Assam and Arunachal Pradesh, the ride provided an enriching cultural and riding experience in the Eastern Himalayas.

GROWTH FOCUS

India Business

Royal Enfield - India Performance

In FY 2024-25, Royal Enfield sustained its growth momentum in the domestic market, continuing to outperform the broader two-wheeler industry. The brand maintained its dominant leadership in the middleweight segment (250-750cc), with a market share of approximately 87.1%, and further consolidatet its position in the >125cc category with a 30.1% market share. The Company recorded its highest-ever quarterly sales in FY 2024-25, driven by festive demand and a strong portfolio of

product launches including the Goan Classic 350, Guerrilla 450 and Bear 650. The Hunter 350 crossed a major milestone of 5,00,000 units in cumulative sales since launch, reaffirming its success as a versatile, youth-focussed motorcycle. Royal Enfield continues to invest in brand-building and market expansion, aligning closely with its long-term strategy to drive growth in the premium motorcycle category in India.

	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Royal Enfield Domestic Sales (000)	803	659	574	521	734	835	903
Domestic Motorcycle Market (Millions)	13.6	11.2	10.0	9.0	10.2	11.6	12.3
RE Market share in Motorcycles	5.9%	5.9%	5.7%	5.8%	7.2%	7.2%	7.4%
Motorcycles >125cc (000)	3,213	2,409	2,207	1,813	2,308	2,807	2,995
REs market share in (>125cc)	25.0%	27.4%	26.0%	28.7%	31.8%	29.4%	30.1%

Network, Financing & Business Activities

i. Retail Network

Royal Enfield further deepened its reach across India, expanding its retail presence with a combination of large- format dealerships and studio stores. As of FY25, the brand operates in a large number of cities with a growing pre-owned vertical (REOWN), now present in over 230 cities, enabling deeper engagement with aspirational customers across diverse geographies.

The Company retained its #2 position in the FADA Dealer Satisfaction Survey (2024), reflecting continued excellence in dealer partnerships and customer service experience.

ii. Financing

The Company continued to enhance affordability and accessibility by expanding financing offerings. With low down-payment options, extended tenures, and competitive interest schemes, finance penetration improved to 61% by the end of FY 2024-25. The RE Apps digital finance marketplace has emerged as a key enabler, offering seamless, personalised financing journeys to customers across India.

iii. Enhancing customer experience through innovations

Royal Enfield scaled its REOWN pre-owned platform and continued to promote the Assured Buyback Programme, offering consumers flexible tenure options, guaranteed buyback value, and lower EMIs. These initiatives have redefined customer acquisition and ownership journeys while broadening the customer base and encouraging product upgrades.

INTERNATIONAL BUSINESS

In FY 2024-25, Royal Enfield continued its journey toward becoming a truly global motorcycling brand. The Company built on strong foundations in international markets with new product launches, deeper retail penetration, and a greater focus on local community engagement. Despite ongoing macroeconomic pressures, the brand reported a healthy recovery in international shipments and consistent growth in brand visibility and consumer connect.

Americas

The Americas remained Royal Enfields largest market outside India by volume. The Company posted strong growth, with Brazil and other Latin American markets driving retail momentum. Royal Enfield now operates across 324 retail stores in the region, including exclusive outlets and multi-brand dealerships.

In a challenging North American environment marked by cautious consumer sentiment, Royal Enfield held steady with an estimated 8% share in the middleweight segment, supported by a strategic focus on new launches and network expansion. The brand also progressed with its CKD facility

expansion in Brazil, reinforcing its long-term commitment to the region and unlocking future growth opportunities.

Europe, Middle-East, and Africa (EMEA)

Royal Enfield maintained its leadership position in the UK with a #1 rank in the mid-size motorcycle segment, and continued to grow across key European markets including Italy, France, Spain, and Germany.

The Company added stores in 42 new locations across EMEA and enhanced retail experience through its Extra Mile Retail Development Programme, focussed on standardising customer service, training, and sales excellence.

In the Middle East, Royal Enfield partnered with the AW Rostamani Group to drive growth in the UAE market.

The brand also made its debut in Turkey through a partnership with Kibar Holding, opening a flagship store in Istanbul and establishing a strong foundation in the region.

As of FY 2024-25, Royal Enfield holds a market share of approximately 9% in the EMEA middleweight segment and continues to be one of the top four brands in the category across Europe.

Asia Pacific (APAC)

The APAC region witnessed steady growth in FY 2024-25, with positive traction in Thailand, Indonesia, and Bangladesh. The launch of the fully-owned CKD assembly plant in Thailand marked a key milestone, enabling faster go-to-market capability and deeper manufacturing integration in the region.

Royal Enfield added stores in 2 new geographies, bringing its network to 200+ retail outlets across APAC. The Company also engaged in multiple brand collaborations - including Project Origin, the Taichi Apparel partnership in Japan, and a strategic alliance with the Tourism Authority of Thailand (TAT) - to strengthen brand visibility and cultural relevance.

The brand retained its #2 position in Thailand and improved its ranking to #2 in Korea and #3 in Australia in the middleweight segment. Overall, Royal Enfield held an approximate 9% market share in APAC in FY 2024-25.

In Nepal, CKD operations scaled effectively with four models launched and nearly 10,000+ units sold during the year.

The Company now leads the >125cc segment in Nepal with a market share of 38%, and continues to expand through retail and ride-led engagements across the region.

The all-new Royal Enfield Bullet 350 was awarded the prestigious Gold in the Foreign Motorcycle category at the 7th Japan Bike of the Year Awards 2024, hosted by the Japan Motorcycle Culture Association. This recognition is a testament to the Bullets enduring legacy, refined engineering, and growing global appeal - particularly in one of the worlds most discerning two-wheeler markets.

SAARC*

In a significant move to bolster our international footprint,

The Company announced the commencement of operations of its Manufacturing Unit (Category 2) and flagship showroom in Bangladesh. Set up in collaboration with IFAD Motors, this announcement is a significant boost to the companys business in the SAARC region, and further reiterates Royal Enfields commitment to Bangladesh. Located in Chauddagram, Cumilla District, the new manufacturing facility is Royal Enfields seventh assembly unit outside India - after Nepal, Brazil (2 facilities), Thailand, Colombia, and Argentina - in addition to its state-of-the-art manufacturing and ancillary facilities located in Tamil Nadu, India.

NON-MOTORCYCLE BUSINESS

Royal Enfields commitment to delivering a pure motorcycling experience extends well beyond motorcycles, with its non-motorcycle business emerging as a significant growth driver. This segment continues to enable self-expression, customisation and ownership ease for riders across the globe.

In FY 2024-25, the non-motorcycle business maintained its upward trajectory, comprising apparel, accessories, and aftersales services. The revenues stood at 2,750 Crores, accounting for approximately 12.8% of Royal Enfields overall revenues.

After sales, Service and Spare parts

Royal Enfield sustained its #1 ranking in After Sales as per the FADA Survey (2024), a reflection of its continued

*South Asian Association for Regional Cooperation (SAARC)

focus on quality service delivery. The Company introduced six new RE Essentials products, improved Real-Time RSA tracking in major metros, and expanded its service cost calculator across platforms, enhancing transparency and convenience for customers.

The spares business also recorded healthy momentum, supported by new warehouse integrations and higher fulfilment capabilities. In FY 2024-25, the Company ensured ~99% availability of fast-moving parts, delivering orders within 24 hours across core markets.

Genuine Motorcycle Accessories

Royal Enfields Genuine Motorcycle Accessories business continued to scale, underpinned by launches tailored to new models like the Shotgun 650, Himalayan 450, and Scram 440. The product portfolio expanded with 60 new SKUs, and the GMA Configurator saw increased adoption across global markets.

Regional Supply Hubs continued to drive sub-24 hour turnaround times with an improved fulfilment ratio, ensuring riders have access to personalisation options aligned with performance and design needs.

Apparel

The apparel business made significant strides in FY 2024-25. The Company launched its exclusive apparel brand stores in Pune and Gurugram, offering a premium lifestyle range of helmets, riding gear, and casualwear. New campaigns like

"Anytime, Anywhere Adventures" promoted versatile riding jackets designed for all-weather use, while the brands first digital magazine cover with Cosmopolitan showcased its newly launched womens wear line.

Royal Enfield also launched lifestyle accessories, adding depth to its off-the-saddle offerings. Awards such as "Apparel Brand of the Year" and recognitions for sustainable collections reinforced the brands leadership in motorcycle lifestyle segments

Manufacturing Excellence

The Company strengthened its global manufacturing footprint with new CKD assembly units in Bangladesh and Thailand, enhancing regional access and supply agility. The Bangladesh facility, in partnership with IFAD Motors, marks its sixth overseas unit, while the Thailand plant - its first standalone assembly in Asia Pacific - underscores its commitment to growth in key international markets. These developments complement Royal Enfields state-of-the-art manufacturing and ancillary facilities in Tamil Nadu, India, reflecting its focus on scale, localisation, and operational excellence.

This year marked a significant milestone in our journey towards operational excellence with our highest ever production crossing 1 Million units. We continued to strengthen our manufacturing capabilities with the inauguration of a state-of-the-art control tower that enables real-time monitoring of key parameters, ensuring sharper insights and enhanced responsiveness. The Companys commitment to continuous improvement was also recognised with the Vallam plant receiving the "Sustainable Factory of the Year Award 2024" by Frost and Sullivan, a testament to the relentless pursuit of quality and innovation that defines our operations.

SUSTAINABILITY

As the fourth key pillar of our long-term strategic framework, REBALANCE, sustainability remains integral to our purpose.

In FY 2024-25, Royal Enfield continued to make significant progress towards realising its Environmental, Social, and Governance (ESG) vision. We have strengthened our commitment to conscious and responsible business practices across all facets of our operations. With a sharp focus on minimising our environmental footprint, we actively embraced eco-friendly initiatives while driving impactful social efforts. Our approach to sustainability is holistic - going beyond products to embed sustainability into our value chain, encompassing our vendors, manufacturing processes, and strategic partnerships.

1. Green Business Operations

Energy Management System (EMS) ensures monitoring, control, and optimisation of energy consumption to reduce overall carbon footprint. Royal Enfield has steadily transitioned towards renewable energy, which now contributes to 60% of energy mix in the operations. The company is committed to enhancing the share of renewable and cleaner alternative fuels in the overall energy mix. In line with our transition to cleaner energy, we commissioned a 1 MW rooftop solar installation in the new Cheyyar plant and this has been operational since May 2025. Green energy usage increased by 2.4X.

Emission management - During the year, the company further reduced its emission footprint by 53.3% (tCO₂e per motorcycle produced). It continues to explore new ways of achieving resource efficiency and environmental protection. The company has also disclosed the Scope 1, 2 and 3 emissions as part of the integrated report this year to better

estimate the overall emission footprint and draw a path to Net Zero. Focussed interventions helped us reduce our Scope 1 &

2 emissions by 46% during the year.

Water management - During FY 2024-25, the company continued to maintain Zero Liquid Discharge in our operations with a water positive index of 4.1 in the Oragadam plant, 3.2 in the Vallam plant and 6.4 in the TVT plant. It has implemented rainwater harvesting systems and sewage treatment plants, the water from which is used for various applications.

EML ensures providing water access to the surrounding community and natural ecosystem. Our new facility in Cheyyar is water positive and has been operating as a zero liquid discharge plant since day one, underscoring our commitment to responsible resource management.

Waste management - The company ensures a circular economy through the principles of Reduce, Reuse and Recycle in all operational activities. All its facilities are zero liquid discharge factories where wastewater is treated in the state-of-the-art STP and ETP plants and reused for irrigation and process top-ups. Further, the Company has significantly reduced plastic consumption in packaging. In the year, the company has achieved zero waste to landfill status and has also commenced the usage of Compressed BIOGAS in operations at the Vallam Plant.

Supply and Packaging - The company has also deployed carton packaging conversion of its orders with Forest Stewardship Council (FSC) certified carton suppliers with a view to drive a more sustainable value chain. By March 2025, 60% of the Genuine Motorcycle Accessory packaging had already been transformed, and efforts continue to achieve 100% sustainable packaging.

2. Brand-led social mission

Royal Enfields social mission is to build resilience in communities and nature in the iconic Himalayan Region.

By 2030, the company aims to partner 100 Himalayan communities so that they are adapting and thriving even in the face of climate change. The social mission also aims to catalyse a global movement of 1 Million riders to explore sustainably and become active stakeholders in the mission.

* The Great Himalayan Exploration - A partnership project with UNESCO to safeguard the living heritage of the Himalayas through rider-researchers. Several such cause-led rides are organised throughout the calendar year, documenting and preserving the Intangible Cultural Heritage (ICH) practices across the Himalayas.

? Game Changer - A strategic blueprint was unveiled for the development of Ice Hockey in Ladakh, aiming to field an Indian Ice Hockey team at the 2042 winter Olympics

? Helmets for India - Royal Enfields road safety initiative, that is a not-for-profit artist collective focussing on changing mindsets towards helmet safety and encouraging riders to ride with their helmets on each time they get astride their motorcycles.

3. Corporate Sustainability

The Company currently ranks among the top 30%-ile within global auto companies in the Corporate Sustainability Assessments.

* Among the automotive leaders in India in the S&P CSA 2024 Assessment (DJSI)

? Ranked within top 10 Auto companies globally in the MSCI sustainability ratings

? Ranked #8 (out of 85 in the Global Auto Industry) in the Sustainalytics Assessment

HUMAN RESOURCES

Over the past year, the Company has concentrated on strategic priorities in Human Resource development: enhancing capabilities through capacity building and strengthening employee engagement across the organisation.

Capacity Building

During FY 2024-25, the company provided more than 1,00,000 training hours to its entire workforce with a commitment to empowering our employees in their development by strengthening their functional, managerial and leadership capabilities to make them future fit. This included the following measures:

? We rolled out our Transformational Leadership Program (TLP) and Emerging Leadership Program (ELP) empowering 31 Team managers and 45 managers respectively to lead with purpose and agility.

* Our functional programmes continued to power up capabilities across teams - focussing on deep skillbuilding, agility, and future-readiness.

" We continued to invest in our People Manager

Development Programs, nurturing confident, empathetic and high-impact managers who are ready to lead from the front.

m We accelerated our EV-readiness with tailored training modules designed to upskill teams for the electrified road ahead.

? We launched Gurukulam, our new learning initiative in June 2024. This initiative has been designed to foster continuous growth, knowledge-sharing and a mindset of lifelong learning across the organisation.

Employee Engagement

The company has continued to enhance the empowered, synergetic, harmonious and transparent work environment that values meritocracy and innovation to drive the employees passion for the brand.

ENTERPRISE RISK MANAGEMENT

The Company follows a comprehensive and structured risk management framework designed to proactively identify, assess, monitor, and mitigate potential risks that could impact its operations or strategic objectives. The Risk Management Committee of the Board, together with the senior management team, periodically evaluates key risks based on their likelihood and potential impact. This enables the formulation of an appropriate mitigation framework with focussed strategies to address these risks.

The key enterprise risks and their mitigation strategies are outlined below:

01 Brand relevance risk due to dependency on ICE platforms and evolving consumer preferences

Capital:	Material Issues:	Mitigation Strategy:
Intellectual, Social and Relationship	Customer-centricity, Innovation management	The Company continues to invest in strengthening Royal Enfields global brand resonance by engaging with newer and younger audiences. It is actively building deeper emotional and experiential connections by promoting the authentic pleasures of Pure Motorcycling in a contemporary context. Simultaneously, the Company is enhancing the overall customer journey through a modernised, seamless experience - both digitally and physically. With a clear focus on brand evolution, Royal Enfield is poised to spark renewed enthusiasm among global motorcycling enthusiasts, maintaining its distinct identity while adapting to emerging consumer aspirations.

] 02 Regulatory risk due to evolving global standards and compliance requirements

Capital:	Material Issues:	Mitigation Strategy:
Manufactured	Regulatory compliance, Climate change, Responsible use of materials	The Company has instituted a robust compliance monitoring and risk assessment system to track regulatory developments across all operational geographies. It undertakes proactive identification of potential policy shifts and formulates timely responses to mitigate business impact. Quarterly global compliance reviews are conducted, and certificates are issued to ensure adherence to all applicable rules. A highly experienced homologation team, coupled with technical knowhow in global emission norms and engine development, supports compliance in key markets. Additionally, the Companys Advanced Engineering division works ahead of the curve to address upcoming regulations and accelerate high-priority innovation projects through agile development models.

[ 03 Changing consumer behaviour and transition in product preferences

Capital:	Material Issues:	Mitigation Strategy:
Intellectual, Relationship, and Manufactured	Innovation management, Consumer- centricity, Economic performance	In anticipation of evolving customer expectations and shifts in mobility preferences, the Company has laid out a comprehensive, long-term electric vehicle (EV) roadmap. This includes a robust product pipeline aligned to emerging technologies and consumer insights. Continuous investments are being made to support the EV programme and related infrastructure. A dedicated team monitors global market trends and consumer behaviour patterns to guide product innovation and ensure that offerings remain relevant, aspirational, and technologically aligned.

1 04 Supply chain vulnerabilities and potential disruptions

Capital:	Material Issues:	Mitigation Strategy:
Financial, Manufactured, and Natural	Economic performance, Manufacturing efficiency, Responsible supply chain	To counter the impact of raw material shortages or logistical constraints, the Company has implemented measures such as securing alternative vendors, building strategic inventory buffers, and optimising the variant-feature mix. These steps ensure continuity in manufacturing operations and timely delivery of products. The Company also continuously evaluates its supplier network to identify areas for resilience enhancement and responsiveness across the value chain.

[ 05 Threats to cyber security and data privacy j

Capital:	Material Issues:	Mitigation Strategy:
Intellectual	Ethical business practices, Corporate governance	The Company has invested in advanced IT infrastructure, including firewalls, antivirus software, and secure network systems to protect against cyber threats. Regular system updates, network audits, and employee training ensure continued vigilance. Daily backups of critical data across multiple locations safeguard business continuity and data integrity, while response protocols are in place to auickly address any breach attempts.

[ 06 Geographic concentration and geopolitical risks

Capital:	Material Issues:	Mitigation Strategy:
Financial, Manufactured	Economic performance, Manufacturing efficiency	To mitigate exposure to geopolitical and regional concentration risks, the Company has diversified its supplier and vendor base across geographies. It has also designed its manufacturing plants in Chennai with modular capabilities to flexibly shift production between models and units as needed. This design enhances agility and operational resilience. Additionally, through CKD (Completely Knocked Down) assembly facilities set up in international markets, the Company is expanding its manufacturing footprint and de-risking operations while serving key global demand centres.

[ 07 Human capital risk, including succession planning for key roles j

Capital:	Material Issues:	Mitigation Strategy:
Human	Talent attraction and retention	Recognising the strategic importance of a skilled and engaged workforce, the Company focusses on capability building and structured talent development initiatives. A succession planning framework has been implemented for key leadership roles, supported by internal talent identification and selective external hiring. Long-Term Incentive Plans (LTIPs) are leveraged to retain critical talent and encourage leadership continuity, while high-potential employees are groomed for broader responsibilities through well-defined development programmes.

[ 08 Profitability risk due to volatility in raw material costs and pricing pressure

Capital:	Material Issues:	Mitigation Strategy:
Financial	Economic performance	The Company maintains strong focus on profitability across both ICE and EV verticals. A working group consistently monitors fluctuations in input costs and develops strategies to mitigate their impact. These include alternate sourcing, value engineering initiatives, and continuous cost optimisation efforts. Additionally, the Company evaluates pricing structures and enhances global market penetration to balance the impact of input cost escalations, ensuring a sustainable and profitable growth model.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company maintains a strong and comprehensive internal control framework that is responsible for monitoring operations, safeguarding assets from unauthorised use or losses, detecting and preventing frauds/losses, maintaining proper accounting controls for ensuring precision and reliability in reporting of operational and financial statements, addressing the evolving risks in the business, sustaining productivity and ensuring compliance to the applicable laws and regulations.

During FY 2024-25, the Company assessed the effectiveness of Internal Control over financial reporting and found it to be adequate and effective. The Company strengthened its Internal Control System by creating a risk and control matrix for various critical processes through a special project "Internal Control - Centre of Excellence (IC-CoE).

The IC-CoE is a centralised team of specialists who provides ongoing support to colleagues and ensures internal checks and controls over processes for continuous improvement.

This team also collaborates with project owners who have the primary responsibility of ensuring adherence. EMLs robust SAP-based Enterprise Resource Planning (ERP) system ensures a high degree of system-based checks and controls to protect its assets. Moreover, EMLs governance risk and compliance frameworks ensure the effectiveness of internal controls and adherence to all the applicable regulations and compliances.

An independent Internal Audit team monitors the functions and processes according to a schedule approved by the Audit Committee. The adequacy and effectiveness of the internal financial controls concerning financial reporting are reviewed by the statutory auditor. The Companys whistle-blower policy/ vigil mechanism facilitates all employees, vendors, dealers and other stakeholders to report fraud and wrongdoings without fear of consequences

FINANCIAL REVIEW

Eicher Motors Limited achieved its highest-ever annual volumes in FY 2024-25 at 10,02,893 units. Revenue for the year grew by 14% year-on-year to 18,870 Crores, marking yet another milestone as the highest-ever annual revenue recorded by the Company.

Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) of the Company increased by 8.9% to 4,712 — Crores in 2024-25 from 4,327 Crores in 2023-24. EBITDA percentage for the year was 25.0% in 2024-25 as against 26.2% in 2023-24. Amidst sustained increase in commodity prices in the first half of FY 2024-25, the Company delivered improvement in the profitability on the back of a healthy product mix coupled with strong focus on cost reduction and value engineering helped offset the impact of higher costs.

Consolidated Net Profit After Tax (PAT) increased by 18.3% to 4,734 Crores in FY 2024-25 from 4,001 Crores in FY 2023-24. An increase in Revenue, EBITDA, and higher contribution from the Companys JV with Volvo AB - Volvo Eicher Commercial Vehicles have uplifted the profit growth over last year. As a result, EMLs consolidated EPS (Basic) for the year increased by 18.2% to 172.76 per share.

Net Profit After Tax and EPS

Overall volumes in International markets (consolidated) increased to 1,00,136 units on the back of strengthening macroeconomic conditions in key markets such as Europe, USA etc. The revenue from International business in FY 2024-25 was 2,546 Crores and accounted for 13.5% of EMLs consolidated revenues.

A great acceptance and rising penetration of aftermarket parts and services, greater availability of genuine motorcycle accessories and a wider range of apparel underpinned a healthy performance of the non-motorcycle business. Total revenue from spares and services, apparel, accessories and others increased by 12.7% YoY to 2,750 Crores in 2024-25 and contributed to 14.6% of EMLs consolidated revenues.

The Companys financial position remains robust with total cash and cash equivalents, and investments (other than in subsidiaries and Joint Ventures) of 16,376 Crores. It generated a healthy cash flow from operations at 3,980 Crores and continued to invest in its future - which includes new product development activities (both ICE and EVs) and setting up operation facilities along with a special focus on growing its digital capabilities. The total capital investment for the year stood at 1,024 Crores.

Key Financial Ratios

In accordance with SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015 (Amendment) Regulation, 2018, the Company is required to give details of significant changes (change of 25% or more as compared to the immediate previous financial year) - refer note 55 and 54 of the standalone and consolidated financial statements, respectively. The Company has been reporting the following key financial ratios:

	UOM	Standalone		Consolidated
		2024-25	2023-24	2024-25	2023-24
Inventory Turnover Ratio	Times	9.6	9.1	7.1	6.9
Current Ratio	Times	1.7	1.2	1.6	1.2
Trade Payables Turnover Ratio	Times	4.5	4.6	4.4	4.5
Net Capital Turnover Ratio	Times	6.7	31.2	7.0	29.9
Operating Profit Margin	%	25.8	27.2	25.0	26.2
Net Profit Margin	%	23.2	23.3	25.1	24.2
Return on Equity	Times	0.3	0.3	0.2	0.2
Return on Capital Employed	%	28.5	30.5	23.8	25.4
Earnings per share (basic)		156.15	136.98	172.76	146.18
Earnings per share (diluted)		155.80	136.75	172.37	145.92

Business Environment

The economic backdrop for commercial vehicle sales in India for FY 2024-25 was shaped by a mix of resilient overall GDP growth, continued focus on infrastructure expenditure (budgeted estimate at 3.4% of GDP) and robust consumption. However, rising geopolitical tensions and proposed U.S. tariffs pose risks to global trade, warranting close monitoring and agile responses.

The Commercial Vehicle (CV) industry remained stable in FY 2024-25 with sales of 4,93,194 units (>3.5T incl. Exports), reflecting marginal growth of 0.6% over sales in the previous fiscal year. Heavy-Duty (HD) trucks declined by

4.6%, impacted by subdued demand for multi-axle vehicles, tippers, and tractors due to sluggish infrastructure and mining activities during the extended election period. The bus segment saw robust growth of 16.1%, supported by increased demand for school and staff transport.

From a policy perspective, we see consistent focus by the Government on modernisation, logistics efficiency and local production. These are supported by initiatives like PM E-Drive for electrification, PM Gati Shakti as an umbrella for logistics initiatives and Make-in-India and Production Linked Incentives to encourage local production and indigenisation.

VECV Performance

VECV recorded robust sales of 90,161 units, marking a growth of 5.4% compared to FY 2023-24. The year was characterised by strong execution across customer-focussed initiatives, digital transformation, technology advancement, and operational excellence. Significant achievements included the entry into SCV segment with electric-first Eicher Pro X assembled on an all-women production line at Bhopal and strengthened leadership in the LMD segment. HD trucks and buses achieved their highest-ever sales, boosted by innovative products like the industrys first Pro 8035XM 8X4 tipper, featuring AMT and 29.5 cum box body and the Volvo FM 420 Road Train.

BUSINESSES, MARKET AND FUTURE PROSPECTS

? Eicher Trucks and Buses (ETB) delivered its highest- ever sales performance in the Financial Year 2024-25, with 87,724 units sold, registering a growth of 5.6% over the previous year. This performance was driven by strong volume momentum across LMD, HD, and Bus segments. The Company achieved leadership in the LMD segment and crossed the 20,000 sales mark in the Bus segment.

m Industrial production reached 88,471 vehicles, reflecting significant quality improvements attributed to automation, IoT, AI, and the Volvo Production System.

m Bus Plant produced 8,157 built-up buses, contributing to total bus deliveries of 10,280 units, including contract manufacturing. The dedicated EV facility supported increased electrification demands.

Volvo Trucks India (VTI) retained leadership in the premium truck segment despite market challenges, selling 1,819 units. Non-coal segment volumes increased to 32%, with notable advancements in LNG tractors deployed in the E-commerce segment. After sales revenues surpassed 1,000 Crores, reflecting high vehicle usage and improved customer support.

Volvo Buses India (VBI) posted record coach sales of 618 units, an increase of 81.2%. Recovery in intercity sleeper and coach and tourist segments helped drive growth. During the year, Volvo Buses India showcased its leadership through industry events like Prawaas and Bharat Mobility.

International Business: Exports grew 39.2% from low levels to 5,181 units, driven by product innovations, entry into Indonesia, and expanded presence in the Middle East, Africa, and South Asia. Notable initiatives included launching Euro V products and telematics solutions in Middle East markets.

Eicher Engineering Components (EEC): EEC achieved record revenue of over 2,000 crores, growing by 23%. Key milestones included rapid establishment of

an axle assembly line for Eicher Pro X (EV & Diesel) and operationalising Plant III for exports. Enhanced automation and sustainability initiatives strengthened EECs global positioning.

VE Powertrain (VEPT): VEPT delivered a record 60,155 engines, surpassing the cumulative milestone of 400,000 engines which now operate all over the world.

VE Electromobility: VE Electro-Mobility advanced Eichers electrification journey by deploying over 60 electric buses with corporates and schools. This was further complemented by the fulfilment of orders for more than 40 electric buses, including 15 for Kochi Metro, and the securing of a prestigious order for 496 buses under the PM-e-Bus Sewa Scheme.

	Industry		VECV		Market Share		VECV	Industry
Models	FY 2024-25	FY 2023-24	FY 2024-25	FY 2023-24	FY 2024-25	FY 2023-24	Growth	Growth
Domestic
Cargo (3.5-5 Tonne)	6,362	7,013	1,651	1,847	26.0%	26.3%	-10.6%	-9.3%
LMD (5.0 -18.5 Tonne)	1,07,628	1,11,410	38,700	38,712	36.0%	34.7%	0.0%	-3.4%
HD (>18.5 Tonne) Combined Eicher & Volvo	2,46,135	2,57,933	23,856	23,660	9.7%	9.2%	0.8%	-4.6%
SCV (2.0 - 3.5 Tonne)	-	-	127	-	-	-	-	-
Buses (Combined Eicher & Volvo)	96,323	82,959	20,646	17,620	21.4%	21.2%	17.2%	16.1%
Domestic Total	4,56,448	4,59,315	84,853	81,839	18.6%	17.8%	3.7%	-0.6%
Exports	36,746	31,808	5,181	3,721	14.1%	12.0%	39.2%	18.4%
VECV Total	4,93,194	4,90,350	90,161	85,560	18.3%*	17.4%	5.4%	0.6%
Volvo Brand**
Volvo Trucks	2,320	2,274	1,819	2,131	78.4%	93.7%	-14.6%	2.0%
Volvo Buses	28,327	22,064	618	341	2.2%	1.5%	81.2%	28.4%

The industry-leading MyEicher App continues to grow with over 3,50,000 Eicher trucks and buses now covered. Under the Uptime initiative, more than 1,80,000 vehicles benefited from real-time predictive diagnostics, reaffirming Eichers commitment to maximising uptime. Leveraging in-house analytics and telematics, the initiative continues to drive efficiency, reliability, and operational performance through actionable insights.

The expanded Site Support initiative now spans 355 sites nationwide, catering to over 17,500 vehicles, delivering unmatched on-ground customer support, enhancing Uptime, and elevating operational reliability.

Focus on Innovation, Technology upgrade and new products

The year was headlined by the launch of Eicher Pro X small truck addressing the large 2-3.5T segment. During the fiscal year, VECV accelerated its innovation and product development initiatives, introducing more than 90 new products and variants. Innovation is nurtured at VECV and 36 new technologies amongst over 2,400 ideas were showcased on the 12^th Innovation Day in Indore. Key developments included the introduction of the Euro 5 range in Middle East markets, completion of regulatory readiness for Truck AC norms, and successful customer seeding of Diesel and CNG variants of the Pro X range. Additionally, notable advancements were made in electric vehicle and hydrogen fuel (H2-ICE) technologies, strengthening VECVs capability to deliver future-ready transport solutions.

Towards Sustainable future

In FY 2024-25, VECV made significant strides towards sustainability, reinforcing its roadmap for achieving Net Zero and carbon neutrality. Key initiatives included enhancing renewable energy capacity with a 4.5 MW rooftop solar installation aimed at reducing emissions by 25%, recycling 52,000 KL of water through an artificial lake at the Bhopal plant and planting 66,000 trees to offset 660 tonnes of CO₂ emissions.

Subsidiaries:

m VECV South Africa operated in a flat market, recording sales of 200 units, while expanding its dealer network by three new outlets and strengthening aftersales infrastructure.

* VECV Lanka benefited from improved market conditions, resuming imports from February 2025 and positioning itself for recovery and growth.

* PT VECV Automotive Indonesia was incorporated during the fiscal year and progressed towards operational readiness as part of VECVs strategic regional expansion.

LOOKING AHEAD

Indias economic momentum remains strong, supported by increasing consumption, infrastructure investments, and a clear policy push toward sustainable growth. As the country prepares for its next phase of development, the Commercial Vehicle industry is poised to benefit from continued capital expenditure in roads, logistics, mining,

and urban development. The outlook for FY 2025-26 is positive, with growth expected across key CV segments, particularly in Heavy-Duty Haulage, Intercity Buses, and Small Commercial Vehicles, as demand revives post the general elections. There are, however, potential risks linked to the global geopolitical situation and impact of tariffs imposed by the US. The Company remains agile and resilient, with strong enterprise risk management systems to monitor and react to any changes.

VECVs transformation agenda, aligned to the theme of "Transform to Perform," positions the Company for sustainable and profitable growth. With a robust product pipeline, continued investments in digitalisation, industrial infrastructure, and customer service and dealer network, the Company is well-placed to consolidate its leadership in the domestic market while expanding its global footprint.

With over 500 electric Trucks & Buses sold and more than 20 Million electric kilometres clocked, the Company remains committed to the transition to green mobility. In addition to scaling its EV operations, VECV is actively delivering clean fuel technologies including LNG & CNG and developing hydrogen- based solutions to support Indias decarbonisation goals.

The expansion into SCVs, growth in international business, and traction in segments like Buses and Components further enhance long-term growth visibility.

The Company remains confident in its strategy, guided by strong execution, customer focus, and innovation to navigate market dynamics and drive long-term stakeholder value.