SCHOOL OF MANAGEMENT

MASTER OF BUSINESS ADMINISTARTION

A STUDY ON

“EICHER MOTORS LIMITED SALES AND MARKETING OF VECV

AND ROYAL ENFIELD”

NAME: LIKITHA CD

SRN: PES1PG23MB469

SUBJECT: MARKETING

MANAGEMENT (MM)

CLASS- 1ST TRIMESTER (G SECTION)

UNDER THE GUIDANCE OF

Prof. DEEPAK SHYAM

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 TABLE OF CONTENT

[Link] CONTENT PAGE NO

1 INTRODUCTION 4

2 OBJECTIVE OF THE STUDY 6

3 SIGNIFICANCE OF THE STUDY 6

4 REVIEW OF LITREATURE 7

6 RESEARCH METHODOLOGY 8

7 DATA INTERPRETATION 10

8 CONCLUSION 16

REFRENCES 17
9

10 WEBSITES 17

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 ABSTARCT
Eicher Motors is India’s leading manufacturers in automobiles. The company's headquarters are in
New Delhi. The Goodearth Company was founded in 1948 with the purpose of distributing and
servicing foreign tractors.

In the year 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. Eicher Motors plays an important role in India’s automotive
industry since 1948, by creating a versatile vehicle portfolio to its customers and the industry.

In this paper we are analyzing the sales and marketing of the VE Commercial Vehicles (VECV) and
Royal Enfield of 5 years, the improvement and the strategy over the years that they are following to
have the trust of their customers and serving in the automotive industry for such a long period of time.
A hypothesis testing is done using the primary data comparing the age and how many people know
Eicher Motors as a commercial vehicle.

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 INTRODUCTION
The primary industry in India that contributes 7% of its GDP to the nation's growth and development is
the automotive sector. Not only do the automobile industry aid in the development of the nation, but
they also offer many Indians direct or indirect work opportunities. It also plays a major role in the
export industry and has majority of the work done through exports.

Major categories of EM include Royal Enfield and VE Commercial Vehicles (VECV). Its primary
business is the automotive sector. It has total of Rs.15,037.29 crore of revenue and spread across over
60 countries. In the year 1993 Eicher acquired interest in the Enfield India and had an agreement with
Mitsubishi and had a successful technology transfer and complete indigenization. Enfield India Ltd
renamed itself as Royal Enfield Motors Ltd.

The Motto of the Eicher Motors is PARTNERING PROSPERITY. The EM plant has been set up at
Pitampur, Madhya Pradesh, India. They have a really good engine facility in the automotive and non-
automotive industry meeting the Indian and global customers requirement. A joint venture between the
Volvo Group and Eicher Motors Ltd., VE Commercial Vehicles (VECV) was established in 2008.

The company prioritizes eco-friendly production, community progress and improvement of workskills.
Demonstrating a strong commitment to road safety, Eicher maintains high product standards. It further
aims to bolster its global presence and uphold its innovation legacy. The company’s main focus is
delivering advanced, efficient, and high-quality vehicles to its customer worldwide.

Eicher Motors has sales growth of 38.96%, with latest sales reaching of upto Rs 3,930 Cr. They have a
profit growth of 65.34% over the year that is of Rs 2,622.59 Cr. They maintain a good Return On
Equity (ROE) of 22.24% and low equity ratio of 0.01, showing their financial stability over the years in
the automotive industry. They pay a dividend of Rs 37 per share and market capitalization of Rs
104,763 crore.

The few achievements of the companies include,

• It has received an ISO certification for its quality systems.
• It has received the IES Excellence Award, for its excellent productivity, quality innovation, and
management.
• It has been awarded with the National Productivity Council for its outstanding performance in
its production.
• Supply Chain Leadership Award 2022: For the best supply chain maintainance even during the
crisis.
• National Awards for Excellence in Branding and Marketing in July 2023- The VECV wins this
award for their Brand, Product and Service Launch.

The Eicher Motors Ltd. have many competitors in their industry namely few of them are,
1. Atul Auto Ltd. (ATUAUT)
2. Bajaj Auto Ltd. (BAJAUL)
3. Hero MotoCorp Ltd. (HEROHO)
4. Kinetic Engineering Ltd. (KINENG)
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5. Majestic Auto Ltd. (MAJAUT)
6. Scooters India Ltd. (SCOOIN)
7. TVS Motors Company Ltd. (TVSM)

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 OBJECTIVES OF THE STUDY

The main objectives of the study are:

1. To find the demand of the Eicher Motors in the industry.
2. To find the sales and marketing strategy growth of the Eicher Motors for over 5 years.
3. Comparing the statistical analysis and the development of the Eicher Motors over the years.

SIGNIFICANCE OF THE STUDY

The Significance to study the Eicher Motors is to understand how it is helping in the economic
growth and development of the country, as it is an Indian Product. Not only the Eicher Motors but
also as a whole, the automotive industries are playing a very important role in the economic
development of the country by importing and exporting of the products, providing employment
opportunities to many people and mainly the safety of lakhs of people who are travelling using the
Eicher Motors products.

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REVIEW OF LITREATURE
The literature review on Eicher Motors production, marketing and sales strategy includes the
views of many scholar,

1. A study of consumer’s perception towards passenger’s transportation system with

special reference to Eicher motors in Pune City: In this paper we get to study the
various types of vehicles manufactured in the automobile industry. The study is to
know the potential and the market share of Eicher Motors in its AC bus segment in the
competitive city of Pune in Maharashtra. This paper also tells about the various
categories of vehicles available in the Eicher Motors and their usage in day to day life.
The Likert Scale is used as a scaling technique to know the performance of Eicher
Buses in Pune city.
2. A case study of Eicher Motors Ltd, Indore (MP) for optimize of delay period in
assembly line using Kilbridge Western methods and to enhance the productivity
and efficiency of production: In this paper we are studying about the assembly
process by which the manufacturing parts are put together to get the finished products.
They also speak about assigning tasks to the work stations so the number of
workstations are minimized for a production rate and cycle time for Eicher Ltd.
3. Impact of earning per share and price earnings ratio on market price of share:
In this paper they examine the earning per share and the price earnings ratio on
market price ratio of the company share. Here they are using 8 companies for their
study and comparing their earnings per share and ratio on market price for 5
consecutive financial years. Multiple regression analysis is performed to find out the
earnings and price ratio on market share.

4. An Organization study report of Eicher Motors Limited: In this paper they are
particularly speaking about the iconic brand Royal Enfield and their different models
that are playing a very important role in the premium segments of motorcycles and they
are giving competition to other premium brands of motorcycles and their sales and
income statement for the year 2018 and they are also speaking about the other products
manufactured by Eicher Motors such as the VECV.

5. Eicher Motors Iconic Royal Enfield Brand: In this paper we analyze that they have
particularly spoke about the main product of the Eicher Motors The Royal Enfield of
how they are expanding their brand name by setting up the stores everywhere and
maintaining their brand value and keeping intact with the customers. Overall their sales
has been immensely increased over the past 10 years and giving a high competition in
the field of motorcycle segments.

6. Using Marketing-Mix to introduce Eicher-Brand Truck-A Context on Runner

Motors: In this paper we see that they are generally speaking about all the Eicher
Motors Products in all the segments being the Light Duty Commercial Vehicles or the
Heavy Duty Commercial Vehicles where they have from the basic product to the
premium segment fulfilling all the needs of the industry being it sales, safety of the
customer, and even the buying, selling and trading of their trucks, buses and used
products which are easily available at their end in their official website itself providing
easy access to the customers.
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RESEARCH METHODOLOGY

In this research paper we are using the Primary and the Secondary data for finding out the sales and
marketing strategy of the Eicher Motors in the VE Commercial Vehicles (VECV) and the Royal
Enfield segment for the past 5 years that is from 2018-2019 to 2022-2023.

As in of the Primary data we are conducting a questionnaire about the company Eicher Motors and
taking response of 106 members and using them to find out the marketing strategy of the company of
how well they have reached the customers.

As in of the Secondary data is concerned we are taking the sales data from the official website of both
the VECV and the Royal Enfield sales for the past 5 years from the financial year 2018-2019 to 2022-
2023 and by comparing the sales of the trucks and buses if there is and increase or decrease in the
production of the manufacturing units of these vehicles and checking to see of how important these
vehicles are in the transport department for importing and exporting of the goods.

Seeing to the Marketing Strategy and Mix of the Eicher Motors they are using 4P’s in their business to
make the brand succeed in the market. The 4P’s used in the strategy are
1) Product Strategy.
2) Pricing Strategy.
3) Place and Distribution Strategy.
4) Promotional and Advertising Strategy.

1) Eicher Product Strategy: In this segment we can mainly see that the Eicher Motors are divided
into 3 main categories according to the production of the products:
a) VE Commercial Vehicles: In this segment Eicher Motors are offering products like Eicher
trucks and buses, Volvo Trucks and some of the ither engineering components. Examples:
Eicher Pro 1059, Eicher Ambulance etc
b) Royal Enfield: In this segment the EM are offering products like Café Racer, Cruiser Bike,
Retro Street Bike etc
c) Eicher Polaris: In this segment both the companies that is the Volvo and Eicher do a joint
venture to manufacture personal vehicles for family and business.

2) Eicher Pricing Strategy: As the Eicher Motors has different category and wide varieties of
product available each of the segment has their own pricing strategy:
a) For the segment of the Royal Enfield bike they are priced at a premium price as it is used by
the urban population and comfort of a premium bike due to its style and robustness of the
bike. Though it has many competitors like Honda, TVS etc but still it stands out among
them due to the quality of the product that Eicher is providing.
b) For the segment of the VE Commercial Vehicles the pricing is always slightly high due to
the competitive pricing strategy to gain more market share and maximum number of sales to
survive in the industry. Usually a truck costs around 12-15 lakhs that is only the basic
without the body building parts which will cost separate.
c) For the segment of other customized vehicle the pricing is always high as it is according to
the needs of the customer with premium commodities available.

3) Eicher Place and Distribution Strategy: Coming to the Marketing Mix of the Eicher Company,
the Eicher Motors are not available in India but also 50 other countries has it that is exporting of
the product happens. In India they have a good distribution network with the company owning
12 stores and 380 dealers in big cities of India. Not only selling their products in store but their
Royal Enfield products are available online in their official website where the customer can
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 have the pricing details of the product and book the product there only as they have an amazing
sales team who will give all the details and the purchase of the product can be done.
4) Eicher Promotion and Advertising Strategy: Eicher has a strong brand loyalty among its
customers but according to the primary data collected many people have suggested about their
marketing strategy as many people do not know about their products much. Though they have
their social media pages in Facebook, Youtube etc, they have not been promoting their products
properly.

We are using the Descriptive Statistics Method to analyze the data and to obtain the analysis of the
sales of the VECV and Royal Enfield products.

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DATA INTERPRETATION

In the data interpretation we analyze the sales and marketing of the VECV and the Royal Enfield
vehicles by the Eicher motors. Checking for the sales value of past 5 years and the marketing
value from the primary data that are collected.
Table 1: shows the Sales of the VE Commercial Vehicles for the past 5 years in India.

[Link] YEAR NO OF SALES

1 2019 72,969
2 2020 48,721
3 2021 41,268
4 2022 57,077
5 2023 79,623

Figure 1: shows the graphical representation of the sales of the VECV from 2019-2023 in India.

SALES OF VECV VEHICLES FROM 2019-2023

90000 79623
80000 72969
70000
57077
60000
NO OF SALES

48721
50000 41268
40000
30000
20000
10000
0
2019 2020 2021 2022 2023
YEAR

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 Table 2: Shows the Sales of the Royal Enfield Vehicles from 2019-2023.

SL NO YEAR NO OF SALES
1 2019 8,26,098
2 2020 6,95,947
3 2021 6,12,350
4 2022 6,02,268
5 2023 8,34,895

Figure 2: shows the graphical representation of the sales of the Royal Enfield Vehicles from 2019-
2023.

SALES OF ROYAL ENFIELD VEHICLES FROM 2019-

2023
900000 826098 834895
800000 695947
700000 612350 602268
NO OF SALES

600000
500000
400000
300000
200000
100000
0
2019 2020 2021 2022 2023
YEAR

Table 3: shows the age group and how many customers know about Eicher Motors.

AGE GROUP YES NO

18-25 76 15
25-40 12 1
40-60 3 0
60+ 0 0

By conducting the hypothesis of testing on the above data for Age-group and how many customers
know about EM. We are using the T-test and ANNOVA test to check the hypothesis.

Assumptions:
Ho= There is no significant difference between the awareness of Eicher and age group.
H1= There is a significant difference between the awareness of Eicher and age group.

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 t-Test: Two-Sample Assuming Equal Variances

YES NO
Mean 22.75 4
Variance 1286.25 54
Observations 4 4
Pooled Variance 670.125
Hypothesized Mean Difference 0
df 6
t Stat 1.024326
P(T<=t) one-tail 0.172596
t Critical one-tail 1.94318
P(T<=t) two-tail 0.345193
t Critical two-tail 2.446912

From the above test we can see that the t Calculated value is less than the t Critical value (t Cal<t
Cri) (1.02<2.44).
Therefore we can conclude that since H0 lies in the acceptance region we fail to reject H0.
There is no significant difference between the awareness of Eicher and age group.

Anova: Single
Factor

SUMMARY
Groups Count Sum Average Variance
YES 4 91 22.75 1286.25
NO 4 16 4 54

ANOVA
Source of
Variation SS df MS F P-value F crit
Between Groups 703.125 1 703.125 1.049245 0.345193 5.987377607
Within Groups 4020.75 6 670.125

Total 4723.875 7
From the above test we can see that the F value is less than the F Critical value (F<F Cri)
(1.04<5.98).
Therefore we can conclude that since H0 lies in the acceptance region we fail to reject H0.
There is no significant difference between the awareness of Eicher and age group.

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Figure 3: shows the graphical representation of the analyzing of the hypothesis testing.

ANALYSING HYPOTHESIS TESTING

80
70
60
50
YES/NO

40
30
20
10
0
18-25 25-40 40-60 60+
AGE-GROUP

YES NO

Figure 4: shows the age responses of the people who have been responded to the questionaire on Eicher
Motors.

Figure 5: shows about how many people know the Eicher Motors.

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Figure 6: shows how Eicher Motors are helping in the economic growth of the country.

Figure 7: shows which segment of Eicher Motors they have seen the most.

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Figure 8: shows EM recommended to others.

Figure 9: shows if there has to be any segment of EM introduced.

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 CONCLUSION
From the primary data that are collected from the customers says that they all have a good opinion
on Eicher Motors and they are very useful in the economic growth of the country. The main point
that is recommended by the customers when asked is that even though Eicher Motors have good
marketing strategy in their motorcycle segment but they failed in the marketing of the Eicher
Motors in the Trucks and Buses segment as many people do not know about their variety of
product range available in the market.

From the above illustration of the secondary data we can observe that there is an highly increase in
the sales of both the VECV and Royal Enfield in Eicher Motors post the pandemic situation where
the economic growth of the company has been increased. Even though there was a major decrease
in the sales during the pandemic situation they bounced back in both normal and premium segment
of the vehicles where according to the usage of the transportation and commercial vehicles are
used.

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REFERENCES
1. A study of consumer’s perception towards passenger’s transportation system with
special reference to Eicher motors in Pune City: Malewar, S., Gupta, S., & Bajaj, S.
(2018). A STUDY OF CONSUMER’S PERCEPTION TOWARDS PASSENGER
TRANSPORTATION SYSTEM WITH SPECIAL REFERENCE TO EICHER MOTORS
IN PUNE CITY.
2. A case study of Eicher Motors Ltd, Indore (MP) for optimize of delay period in
assembly line using Kilbridge Western methods and to enhance the productivity and
efficiency of production: Lakhan Gadge1, K.K. Gadgey2, Sunil Jamra3 Assistant
Professor-, HOD2, Lecturer3 Department of Mechanical Dr. APJ Abdul Kalam UIT, Jhabua
M.P, India1 Government Polytechnic College Sanawad M.P, India2 SATI Polytechnic
College Vidisha M.P, India3.
3. Impact of earning per share and price earnings ratio on market price of share: A study
on Auto Sector in India: Kumar, P. (2017). Impact of earning per share and price earnings
ratio on market price of share: a study on auto sector in India. International Journal of
Research, 5(2), 113-118.
4. An Organization study report of Eicher Motors Limited: Rahman, M. H. (2022). Using
Marketing Mix to Introduce EICHER Brand Truck–A Study on RANGS Motors Limited.
5. Eicher Motors Iconic Royal Enfield Brand: Chaudhary, P. (2021). Royal Enfield:
Preserving and leveraging legacy appeal while revamping brand imagery. Journal of Brand
Strategy, 10(3), 243-258.
6. Using Marketing-Mix to introduce Eicher-Brand Truck-A Context on Runner Motors:
Ahmed, M. M. (2023). USING THE MARKETING MIX TO INTRODUCE EICHER
BRAND TRUCK-A CONTEXT ON RUNNER MOTORS”

WEBSITES
[Link]
[Link]
[Link]

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