Eicher Motors’ rise mirrors India’s journey towards industrial and economic development. Founded by Man Mohan Lal in 1948, the company began operations when the country was still largely agrarian. By introducing modern tractors, the company played a pivotal role in transforming India’s agricultural landscape.
1948, Man Mohan Lal established Goodearth Company to import and distribute tractors, helping Indian farmers move away from manual farming methods. Between 1952 and 1957, the company sold 1,500 tractors—a modest start that laid the foundation for a future industry giant.
By 1958, Goodearth had entered a partnership with German manufacturer Eicher Traktoren. The collaboration led to the establishment of India’s first tractor-manufacturing facility.
In 1959, the newly renamed Eicher Tractor Corporation of India Limited produced India’s first indigenously built tractor at its Faridabad plant. By 1960, the company was fully localized in its production process, earning a reputation for reliability and quality.
The 1980s marked a significant milestone for Eicher. Vikram Lal, Man Mohan Lal’s son, who had joined the family business in 1966, spearheaded the acquisition of Eicher Traktoren in Germany. With financial backing from international banks, the Rs 2 crore investment saved the struggling German company and boosted India’s manufacturing credibility globally.
Eicher Motors Limited was formed in 1982. Through a partnership with Mitsubishi in Japan, it diversified into light commercial vehicle production. The company went public in 1987, solidifying its position in the automotive industry.
In the 1990s, Eicher Motors expanded its portfolio with the acquisition of a majority stake in Enfield India, later renamed Royal Enfield Motors Limited in 1994. The struggling motorcycle brand faced low sales and reliability issues. In 1999, Vikram’s son, Siddhartha Lal, joined the business, determined to revive the iconic brand despite internal scepticism.
By 2005, Eicher Motors sold its tractor and engine divisions to TAFE Motors & Tractors. In 2008, it partnered with Volvo Group to form VE Commercial Vehicles Limited (VECV), focusing on commercial vehicle manufacturing.
Siddhartha Lal’s strategy transformed Royal Enfield into a global motorcycle powerhouse. In 2012, he launched popular models such as the Thunderbird 350 and 500, expanded manufacturing facilities, and introduced the Continental GT café racer in the UK in 2013.
By 2015, Royal Enfield had become the company’s primary profit driver, contributing 40% of Eicher Motors’ revenue and 80% of its operating profit. This success enabled international expansions, including establishing Royal Enfield North America in Milwaukee, Wisconsin.
The next decade saw Royal Enfield launching adventure and classic models like the Himalayan, Interceptor, Continental GT, and Meteor. The brand strengthened its global presence through exclusive stores in major cities, acquisitions such as the UK-based Harris Performance, and international subsidiaries.
Eicher Motors’ journey from importing tractors to building a global motorcycle empire reflects its resilience, innovation, and adaptability. What started as a small venture in India’s agricultural economy evolved into a brand synonymous with quality, heritage, and worldwide recognition.
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Thanks for this excellent history of an impeccable company. What do you think are the future prospects of Eicher motors? Is that current management as efficient as its forefathers?
The current management*
My knowledge about the CV segment is limited but going by reports I expect it to do well. Royal Enfield continues to do well. The growth of the entity looks promising