Eicher Motors Ltd Management Discussions

In the Management Discussion and Analysis, all the numbers pertaining to Eicher Motors Limited ("EML") refer to consolidated numbers.

ECONOMIC OVERVIEW Indian Economy

India retained its position among the worlds fastest-growing major economies. In FY 2022-23, the Indian economy continues to show strong resilience to external shocks. As per National Statistical Office (NSO), Indias GDP growth during FY 2022-23 is estimated at 7.0% as against 9.1% in

FY 2021-22. However, the inflation continues to remain higher at 5.66% in March 2023 as the Reserve Bank of India (RBI) increased the repo rate by 250 basis points in FY 2022-23 as a countermeasure.

Higher capital investment, increasing pace of infrastructure development, the rebound of private consumption, digitalisation, and revival in credit growth continues to reflect

Indias long runway for growth. Rising consumer incomes and purchasing power have potential to sustain the rapid growth in household consumption, boosting the demand for goods and services across industries.

Global Economy

The global economy navigated through a turbulent year

2022 caused by geo-political issues, supply chain disruptions, higher inflation, and the sharp rise in central bank rates.

However, global economic conditions started showing signs of stabilisation in early 2023, with slight moderation in projected global inflation to 7.0% in 2023 as compared to 8.7% in 2022 (as per OECD). The United States economy reported the GDP growth at 2.1% in 2022 on the back of a mild increase in private investment and gradual pick-up in consumer spending. The European economy recorded 2.7% GDP growth in 2022. Further, the GDP of Australia and New Zealand grew at 3.7% and 2.4% respectively in 2022.

INDUSTRY OVERVIEW

Indian two-wheeler and motorcycle industry

The Indian automotive industry has seen a healthy revival in FY 2022-23 (Year ending March 2023), aided by a recovery in the economic activities and recovery in mobility post COVID impacted period (FY 2021-22). However, the two-wheeler segment is yet to reach the pre-pandemic levels as the industry navigates through high inflation, supply chain hurdles, sharp increase in input costs, and the rising cost of ownership due to regulatory changes.

According to the Society of Indian Automobile Manufacturers (SIAM), the two-wheelers segment grew by a relatively moderate 17% YoY growth, after witnessing de-growth for the previous three consecutive years. The domestic sales of two-wheelers in FY 2022-23 were 15.9 million units as against 13.5 million units in FY 2021-22. Motorcycle sales increased by 14% YoY to 10.2 million units, while scooter sales grew over 25% YoY to 5.2 million units. The sales of Electric two-wheelers in India grew over two-and-half-fold to 7,28,090 units in FY 2022 23 over the previous fiscal, aided by subsidies offered by the government(s) and growing penetration of electric vehicles across segments.

The long-term two-wheeler growth potential in India is backed by the relatively young population, rising incomes, wide availability of credit and financing options, and the boostto local manufacturing ecosystem.

Global two-wheeler and motorcycle industry

The global two-wheeler industry faced multiple macro economic headwinds in 2022 such as supply chain disruptions, inflationary pressures, higher interest rates, and dampening consumer sentiment. The semiconductor shortage has led to a production shortfall, especially in the premium segment of motorcycles. According to the SIAM, the exports of two-wheelers from India recorded a 17.8% decline to 3.7 million units in FY 2022-23 from 4.4 million units in FY 2021- 22.

EML OVERVIEW

Eicher Motors Limited (EML) (Bloomberg- EIM: IN) is an Indian, multinational automotive company that has diversified in motorcycle and commercial vehicle manufacturing. Listed on the Bombay and National Stock Exchanges, EML is the listed parent company of Royal Enfield, the worlds oldest motorcycle brand in continuous production since 1901.

Royal Enfield has evolved into an experiential brand to become the global leader in the mid-sized motorcycle segment (250cc - 750cc). Royal Enfield operates in India, and over 60 countries around the world. Its modern technical development centres for product designing are located in Leicestershire, UK, and Chennai, India. Royal Enfields state-of-the-art manufacturing plants are situated in Vallam Vadagal, Oragadam and Tiruvottiyur in Tamil Nadu which manufacture motorcycles for Indian and international markets. Royal Enfields overseas CKD assembly plants are located in Thailand, Argentina, Colombia, and Brazil.

EML has a joint venture with Swedens AB Volvo - VE Commercial Vehicles (VECV). VECV has pioneered the modernisation of commercial vehicles in India and other developing countries. It manufactures a complete range of trucks and buses from 4.9-55 tonnes. VECV exports to over 34 countries and is supported by a strong dealership network of over 500 outlets. The Companys infrastructure includes nine state-of-the-art manufacturing facilities located in Pithampur, Bhopal, Baggad, Dewas (Madhya Pradesh), and Hoskote (Karnataka). The integrated manufacturing plant in Pithampur (VE Powertrain) is the global hub for medium-duty 5 & 8-litre engines for Volvo Group. It caters to the engine requirements of Volvo Group across Europe and Asia.

Royal Enfield

Royal Enfields resilient 122-year successful legacy has been deeply rooted in its ability to remain fiercely unique based on the deep understanding of motorcycling and customers. The

Company has created its own differentiated approach has given the brand its character and a distinct positioning in peoples minds, guiding the Company to create unique products, services, and experiences that have helped it deliver ‘Pure motorcycling experience.

REBALANCE

Royal Enfield remains true to its purpose, mission, and values with the strategic direction of REBALANCE with a view to reorienting the approach to business and making it more resilient in the face of challenges. The Company aims to recalibrate and renew its mission to create an agile, resilient, and timeless business led by pure motorcycling, to bring harmony between people, machine, and terrain. The

REBALANCE approach is based on the following four key pillars: Growth focus with a balance on profitability Sustainable growth - Balancing Social and Commercial objectives EV & ICE - Balance the existing product portfolio of internal combustion engines and the transition into the future with electric vehicles Brand-led customer experience

ROYAL ENFIELD BUSINESS PERFORMANCE

1. New launches Super Meteor 650

Royal Enfields thoroughbred cruiser Super Meteor 650 was unveiled at EICMA 2022. The motorcycle has an enticing new appeal to attract customers in the International as well as India market. The global launch received huge praise from automotive publications and enthusiasts. The model was also showcased in all its colorways on the opening day of Rider Mania 2022 and received an overwhelming response. The production of Super Meteor 650 started at the beginning of 2023 and ~4,000 units were sold in by March 2023.

Hunter 350

Royal Enfield successfully launched the Hunter 350 in Bangkok, in August 2022. Equipped with the proven 350cc "J" platform engine, Hunter 350 is a neo-roadster-inspired motorcycle. The Hunter 350 offers high agility and nimbleness, which is perfect for Urban commuting. After a resounding success in India, this model was subsequently launched across 11 key regional markets. The Hunter 350 has been Awarded "Indian Motorcycle of the Year 2023" and multiple other awards and accolades from the Indian Motorcycling Industry. Since its launch in August

2022, the Hunter 350 has already sold 1,23,932 motorcycles in

India and has had 13,699 models exported to its International Markets.

2. India Business Review i. Royal Enfield Performance

Royal Enfield has seen significant growth in FY 2022-23 in the domestic market and outpaced the Indian Motorcycle market by over 3X in FY 2022-23. Royal Enfields market share remains dominant in the Middleweight segment (250-750cc) and has seen growth in market share in the above >125cc market to 31.9% in FY 2022-23. The Company also grew its presence in the overall motorcycle market to reach a 7.2% market share in FY 2022-23.

ii. India Dealership Network

Royal Enfield has one of the most premium distribution networks in India with 1,090 stores and 969 studio stores across ~1,750 cities. The Company has steadily expanded its sales and service network since 2019 by adding smaller studio stores in smaller pockets of the country to expand its reach to the customer. Royal Enfield currentlyranks #2 in the FADA Dealer Satisfaction Survey conducted in 2022. Significant improvements were implemented in the effectiveness of training for customer-facing service teams, digitisation of marketing, product range and frequency of updates to offer to customers, and significant quality improvement in After-Sales. and personalisation of motorcycles with a broad range of accessories, apparel, etc. to display their personality. It also provides consumers with complete peace of mind by offering holistic maintenance options. The non-motorcycles revenue stood at Rs. 2,041 crores for FY 2022-23 and the business accounted for 14.1% of overall revenue.

iii. India Non-Motorcycle Performance

Royal Enfield offers a pure motorcycling experience including rides, hassle-free ownership, personalisation, and convenient and comprehensive maintenance and care for motorcycles. Royal Enfield has established itself as a lifestyle brand in the last decade and its non-motorcycle business has a sizeable following of its own. It provides consumers a platform for self-expression and an open canvas for easy customisation

1. Genuine Motorcycle Accessories

Royal Enfield motorcycles are known for their ease of personalisation and customisation. For decades, riding enthusiasts have inspired the Company with their personalised and customised Royal Enfield motorcycles as a means of self-expression. The Companys genuine motorcycle accessory (GMA) product range has been expanded from close to 200 SKUs to 267 SKUs in FY 2022-23 with a wide range of new products launched with Hunter and Super Meteor. The Make it Yours (MiY) platform has been very successful in the domestic markets with over 90% of the bookings being done through the platform. In order to enhance the sourcing and availability of GMA, the Company has activated 16 regional distribution hubs across the country for the supply of fast-moving SKUs.

2. Apparel

Royal Enfields apparel business continued its growth trajectory with a solid 29% growth in FY 2022-23 over the last year, primarily driven by a healthy mix of dealerships and the third-party e-commerce channels. In FY 2022-23,

Royal Enfield formed new collaborations with the Industry leading companies such as TCX, Alpinestars and provided world-class gears and riding equipment with Royal Enfields rich heritage to its customers. Further, driven by its ethos of creating unique and differentiated products, apparel business introduced the 1:3 classic collectible in FY 2022-23. Built to perfection, this miniature of Royal Enfield with a 1:3 ratio marks a unique step in the brands legacy of iconic craftsmanship. It is artfully handcrafted with pride, passion, and perfection with every part being identical to the actual motorcycle. The miniature is also equipped with moving parts such as a moving throttle, a moving clutch unit, an adjustable suspension, an adjustable chain, and a micro key. It was launched to much fanfare at

Motoverse 2022 and the Company sold the first 150 units within 3 days of the event.

The apparel business marquee campaign

Art Of Motorcycling - in its third season in FY 2022-23 - recorded more than 54,000 registrations, a 3.5x increase in participation over the previous season. The

Art Of Motorcycling campaign further extended its reach into the art and technology domain by going digital with NFTs. The winning artworks of Seasons 1 and 2 were converted into NFTs and listed on a global platform for people to buy and trade. These NFTs were sold out within

4 days of launch and made Royal Enfield Indias first

2-wheeler brand to introduce NFTs.

The apparel business is inducting sustainable production methods. The Company started sourcing 98% of its cotton sustainably through the Better Cotton Initiative (BCI). It also plans to launch its first fully sustainable product, the Streetwind eco riding jacket, which conforms to GRS (Global Recycling Standard). The jacket is made from plastic pet bottle waste.

3. Spare parts and service

The Company is committed to providing smooth and hassle-free ownership and a fun riding experience to its consumers. Royal Enfield undertook a plethora of initiatives during FY 2022-23 to deliver a best-in-class service experience and strengthen its digital capabilities. Further, the Company ensured 100% commercial readiness on time Enfields for all serviceable parts for new launches i.e. Hunter, Super Meteor 650, and Twins Refresh.

Auto replenishment: Royal Enfield ensured 100% auto replenishment across all dealers and distributors who are associated with the brand. Auto replenishment for Oil and RE essentials was successfully implemented across all channel partners. After the success of auto-replenishment in the domestic market, the Company extended it to the international markets. It started the successful implementation of auto-replenishment in

Thailand between Central Warehouse (CWH), Thailand Warehouse (TWH), and Thai dealers.

Leh support: The Company started providing spare parts support in Leh through a channel partner to enhance the availability and reduce the turnaround time for customers.

Customer centricity: A QR code was implemented for Spares and Oil to enable the customers to check the genuineness and mechanics of loyalty points. Further, a web banner is included on the website of Royal Enfield to create awareness among customers. The Company reported only 0.027% of customer complaints in FY 2022-23.

Sales and service: On the sales and service front, 3,050 new authorised mechanics and 1,856 new retailers were added in FY 2022-23.

Royal Enfield is currently present in over 60 countries and operates via five subsidiaries across multiple continents. Its global retail network (outside of India) spans over 1,150 touchpoints with 207 exclusive stores and 950+ multi-brand outlets (MBOs). Moreover, your Company strengthened its global presence by adding a new CKD assembly unit in Brazil, in addition to existing facilities in Argentina, Columbia, and Thailand.

Americas

The Americas Including North and South America is among the largest market outside of India by sales volume for the past three fiscal years for Royal Enfield clocking a 4x growth in that period. Sales of RE motorcycles have clocked a growth of 44% year-on-year in the American region. Your Company has an expansive network of 88 exclusive stores and 366 multi-brand outlets in the Americas region. Royal Enfields market share in the middleweight segment in the Americas region climbed to -7.8% in FY 2022-23. Within the region, Royal Enfields market share stands at around 7.8% in North America and 7.9% in LatAm. Royal Enfield has established three Completely Knocked Down units (CKD) assembly facilities in the region in the last 3 years showing our commitment to the region. The first facility was launched in Argentina through its partner in September 2020. The second assembly unit based in Colombia, commenced operations in October 2021. During FY 2022-23, Royal Enfield started operations of its CKD assembly unit in Brazil as well. Royal Enfield continues to build its community in the region and has undergone several activities in the year such as: The Tour of Mexico, Opening of Royal Enfield Academy in Columbia, and The 3rd Anniversary of Royal Women Riders Group in Brazil. The Company also conducted Dealer demo tour Stops in the United States.

Europe, Middle-East, and Africa (EMEA) Market

In the EMEA markets, Royal Enfield continued its growth track in FY 2022-23. Royal Enfield achieved three major milestones in the year- a) it gained the Number 1 position in the UK, with a 20.4% market share in the mid-size motorcycle segment, b) it announced the decision to go with the direct distribution model in the UK, and c) its position in Europe improved and now it is the 3rd largest player in the mid-size motorcycles segment from the 5th position last year. Royal Enfields market share and ranking in the mid-size motorcycle segment improved in every country in the region. Overall, it achieved an 8.9% market share in FY 2022-23 in the mid-size motorcycle segment. The 350cc platform has been very well received by customers and motorcycle enthusiasts. The Company has 70 Exclusive Stores and 495 Multi-Brand Outlets in the region. Royal Enfield Club of Europe has a loyal fan following with over 16,000 members and is further gaining momentum with over 800 rides and events through the year to increase customer engagement.

Asia Pacific (APAC)/ The South Asian Association for

Regional Cooperation (SAARC)

Royal Enfields presence in the Asia Pacific (APAC) markets has increased significantly over the last 4 years.

The region holds immense potential for middleweight motorcycles. The Royal Enfield footprint in the APAC markets is represented by 155 dealerships, comprising 49 exclusive stores and 106 multi-brand outlets. Your Company has witnessed 5x volume growth in the region in the last 5 years with its market share rising to 8.9% in 2022-23. Royal Enfield has now gained #1 position in South Korea, #2 in Thailand and #3 in Australia.

Over 11,000 customers were engaged via 463 Rides in the region with the marquee ride - "Moto Himalaya 2022" seeing 60 participants & media partners from various markets. The Hunter 350 was launched across

APAC markets during the year and has been garnering an excellent response among the Stylish, Fun, Roadster genre audiences. The Scram 411, which was also launched in the region during the year, tends to appeal to the Scrambler enthusiasts across markets who are looking for accessible on-road motorcycles with good off-road capabilities thanks to the Himalayan DNA.

4. Royal Enfields EV Strategy

Royal Enfield remains committed to creating innovative and sustainable motorcycle experiences as part of its REBALANCE approach. In recent years, the Company has made significant progress in its electric vehicle (EV) programme with robust development of in-house design, development and testing capabilities. Royal Enfields EV programmes are focussed on consumer requirements and are aimed at creating differentiated, high performance, and fun to ride electric motorcycles with Royal Enfield DNA.

a) In-house teams and capabilities in place

Your Company has built strong in-house capabilities to develop key aggregates and electric vehicles. A strong team of electric vehicle and powertrain development experts, led by CTO, has been put in place and is supplemented with deep investments in development and testing capabilities. The long-term product and technology roadmap is in place and the development work on key projects have been started. The Company already has several ideas in advanced stages of testing and is steadily proceeding towards the planned launch of its first EV product in 2025.

b) Partnership with Stark Future

EML has made a strategic investment of 50 million in Stark Future S. L. - a Spanish electric motorcycle manufacturer - for long-term collaborative research and development in electric motorcycles, technology sharing, technical licensing, and manufacturing. Stark Future has strong capabilities in the EV segment with several patents on its newly-developed electric motocross bike, Stark VARG. The motorcycle is launched in key markets and has garnered an excellent response from customers across the world. Eicher Motors and Stark Future have concluded the technical collaboration agreement and the Teams at Royal

Enfield and Stark are working together on the key projects.

5. Brand and Key Activities

Motoverse 2022 - Rider Mania

Royal Enfield held the 12th edition of Rider Mania, themed ‘Into the Motoverse at Goa, which was a multi-space, multi-theme event encompassing thrilling motorcycling experiences, music by famous artists, and a unique ambiance. Over 54,000 people participated in the three-day event.

EICMA 2022

Royal Enfield unveiled its most anticipated thoroughbred retro cruiser, Super Meteor 650, in Fiera Milano, Europe at EICMA 2022, along with a wide range of purpose-built Genuine Motorcycle Accessories. RE also showcased its strong brand lineage and increasing love from customers through its line-up of custom motorcycles.

Brand Strength

Royal Enfield has been recognised as the 4th strongest Global Auto Brand in 2023, up from the 48th strongest Auto Brand in 2021, according to Brand Finance, the worlds leading brand valuation firm. In a tough geo-political situation, Royal Enfield is the only motorcycle brand to feature among the top 10 global Auto brands and remains to be the fastest-growing auto brand among its global peers.

Brand Social Media

Highlights

We had 46+ million users including

44.9 million new users on our website in FY 2022-23. We recorded 69.5 million sessions logged and 123 million pageviews, leading to 989 thousand BTR leads. Our social media community increased to 10.6 million users in FY 2022-23 from 9.8 million in FY 2021-22. Our engagement rate on Instagram, our primary platform, grew to 9.7% in FY 2022-23, which is significantly higher than the industry average. Our of voice in the market is 39% and the average share of the search was 17 million in FY 2022-23.

Social Media Awards

AAFAQS Media Brand Awards 2023 - Royal Enfield a gold medal for Best Branded Content for its marketing campaign ‘The Vibe Hunters" for Hunter 350. It also won a gold medal for Best Use of YouTube for ‘The Vibe Hunters".

Royal Enfield won a gold IP, an interactive web series on VOOT. It was our first OTT collaboration when Voot Studio and Royal Enfield embarked on a creative journey together.

Trendies Awards 2023 - Royal Enfield for Best Product Launch for its campaign ‘Riding to Viral Success.

Key rides and cups One Ride 2022

Royal Enfield held 11th edition of One Ride themed ‘One World

: One Mission : One Ride to promote sustainability, support remote communities and encourage responsible travel practices. It was celebrated across 50 countries with record 15,000+ rider participation from India alone.

Himalayan Odyssey 2022

The 18th edition of Himalayan Odyssey, flagged off from India Gate, took 70 motorcyclists from worldwide on an 18-day adventure ride, covering ~2,700 km to Umling La, the new highest motorable pass in the world. It also encouraged responsible travel practices with a zero ‘single-use-plastic ride.

Himalayan Adventure Zanskar 2022

It brought together hardcore riders as well as media and influencers who are proficient off-roaders to ride in the Zanskar region.

Astral Ride - Ladakh and Spiti

The rides took participants on an interesting motorcycling journey across picturesque locations in Ladakh and Spiti alongside helping them enhance astral and travel photography quotient on the go.

The Great Himalayan Exploration

Royal Enfield and UNESCO entered a unique partnership and initiated ‘The Great Himalayan Exploration ride to preserve, promote and document the intangible cultural heritage of

India, especially in Eastern Himalayan regions. As part of its social mission, Royal Enfield partnered with 100 Himalayan communities to build resilience and drive them toward a sustainable future.

Continental GT Cup Season 2

Royal Enfield held Season 2 of Continental GT Cup, under the aegis of the Federation of Motorsports Club of India (FMSCI). The race was conceptualised in a unique ‘Pro-Am Series format that allowed amateur riders and professional racers to compete on the same grid. It received an overwhelming response with ~500 registrations, of whom were 100 shortlisted and 25 (10 professional and 15 amateurs) reached the finals.

Clean-up Ride

Royal Enfield held the Clean-up Ride on World Environment Day, in collaboration with multiple civil society organisations. It conducted clean-up campaigns and other community-level activities to promote environmental awareness and efficient waste management.

OPERATIONS OVERVIEW

World-Class Production Capabilities

The Company has established world-class product development capabilities spanning across its three major manufacturing facilities at - Vallam Vadagal, Oragadam and Tiruvottiyur. Royal Enfield added another model to its J-series platform, Hunter 350. Since its launch in August 2022, Hunter 350 received an overwhelming response from consumers. The production capacity for Hunter 350 was ramped up and more than 1 lakh motorcycles were produced within 6 months of launch. RE launched its premium cruiser, Super Meteor 650 in Jan 2023 with a rapid production ramp-up from 340 units in November 2022 to 2,298 units in February 2023.

Royal Enfield received several awards and recognitions in FY 2022-23. Its Vallam facility received the "Future Ready Factory of the Year" award from Frost and Sullivan. The Company also received three awards, "Excellence in Operations", "Excellence in Sustainability" and "Smart Factory of the Year Award" from Manufacturing Today for its best-in-class performance in the manufacturing industry. Royal Enfield also received an award for "Excellence in Environment, Health & Safety" from the Economic Times.

Product Quality

Customer perceived quality levels improved significantly by adopting various quality upgradation projects that resulted in Enhanced customer satisfaction levels.

Successful & Seamless establishment of Quality systems and

Local content part development approvals in CKD facilities in Argentina, Thailand, Colombia & Nepal. Industry benchmark created in surpassing the highest rate of Recyclability - 93% & Recoverability - 98% in the ARAI AIS 129 End-of-life vehicle assessment.

As part of Employee engagement, the team won 4 Gold awards in International Quality Convention conducted by Indonesia Quality Management Association (IQMA).

Effective implementation of the ‘Shoki Ryudo Kanri (SRK) methodology resulted in a reduction in Fault frequency (FF3) with every new launch. The Company has been successful in reducing the FF3 from 6 faults per hundred in FY 2017-18 to 1.4 faults per hundred in FY 2022-23.

Supply Chain Management

Royal Enfield delivered 8.32 lakh motorcycles in FY 2022-23 with the support of its supply chain partners. The Company has strengthened its supply chain network and developed strong relationships with suppliers and dealers for smooth operations.

It maintains real-time collaborative connections and interactions with supply partners for effective management of daily production. The Company faced challenges in sourcing & supply chain in FY 2022-23 through the unavailability of key components, shortage of semiconductors, and material price fluctuations. The supplies of key components were secured through strategic inventory and adding multiple sources for critical parts (e.g. ABS, Electronic components, Alloy wheels, Exhaust system, Engine parts). Amidst the sharp increase in major raw material prices in the beginning of FY 2022-23, your Company undertook aggressive cost reduction programmes to control the product level material cost.

Your Company also assesses its suppliers on social and environmental performance criteria, apart from quality assessments as part of its sustainability commitment. It focusses on local procurement and green packaging through its supply chain to reduce emissions and other adverse environmental impacts.

Research & Product Development

With every new launch, the Company continues to set new standards in product quality. All Models have been upgraded with the latest Engine Management System software to meet OBD II Phase-A requirements meeting the statutory deadline of April 1, 2023. In addition, all models have been updated to be E20 compliant from April 1, 2023. Flex Fuel demonstrator which can run on any blend of Gasoline & Ethanol up to 85% (E85) prototype made and showcased.

ELV regulation AIS 129 Part-2B requires that the Reusability, Recyclability, and Recoverability (RRR) are established for new vehicles at their time of production. This is yet to be notified as a regulation. In FY 2022-23, an RRR evaluation for Meteor was conducted and an audit was concluded by ARAI meeting the AIS 129 requirements:

Reusable and/or recyclable to a minimum of 80% by mass - 93% Reusable and/or recoverable to a minimum of 85% by mass - 98%

Royal Enfield is one of the first OEMs in India to undergo an assessment for RRR requirements. The Company is also continuously making efforts to meet Global Emission requirements and evaluate possibilities to reduce GHG. Two Centres of Excellence were formed for Vehicle Structures & Vehicle Dynamics that work along with the Engineering teams to provide world-class development for new and existing products.

Customer-Centric Digital Initiatives

MIY (Make It Yours) - MIY (Make It Yours) is Royal Enfields unique motorcycle personalisation initiative, which enables consumers to personalise and accessorise their motorcycles to make their own at the time of motorcycle booking. During the financial year 2022-23, the Company worked out on the 3D Configurator readiness for Hunter 350& Super Meteor 650 launches, along with the new development of an exclusive option for Genuine Motorcycle Accessories (GMA) purchase on MiY platform for all models.

Digital Finance Marketplace - Royal Enfield launched a digital finance marketplace on its RE App during the year. This feature on-boards leading financiers on Royal Enfields App and enables customers to toggle, evaluate and select the financing options. The feature further enhances Royal Enfields digital reach to its consumers and is a major step in our efforts to provide seamless brand-led customer experience.

ENTERPRISE RISK MANAGEMENT

The Company has a structured risk management framework for the timely and effective identification, assessment,monitoring, and mitigation of potential risks that may impact its businesses.

The Risk Management Committee of the Board and the senior management personnel prioritise the key risks based on severity and probability, prepare a mitigation framework and formulate robust mitigation strategies. The key risks and their corresponding mitigation measures are depicted below:

1. Supply chain disruption risk

Supply chain disruptions such as shortage of semiconductors (microchips) and rise in commodity prices including oil can delay production and increase input costs, and impact the Companys profitability. Further, high dependence on single-source vendors for key components and on certain country for raw material procurement can lead to concentration risk.

Capital: Financial, Manufactured, Natural, Social and Relationship

Material Issue: Economic performance, manufacturing efficiency, responsible supply chain, customer centricity, responsible use of materials.

2. Concentration risk

The Companys manufacturing is concentrated in a single location Chennai. This exposes it to risks associated with geopolitical crises and natural disasters which may cause operational disruption, shutdown or production cuts, project delays, supply chain hurdles, and increased construction costs.

Capital: Financial, Manufactured

Material Issue: Economic performance, manufacturing efficiency

3. Technology outdating and changing consumer preference risk

The Company faces the risk of brand becoming outdated, because of reliance on ICE, outdated features etc. / sensitive to any change in the consumer sentiment and market segmentation.

The consumer preferences are fast shifting towards electric mobility. The Company faces the risks of readiness to react to this change and having a product line to cater to this change.

Capital: Intellectual, Social and Relationship

Material Issue: Customer centricity, innovation management.

4. Intellectual property risks

The Company faces the risks of not registering patents on designs fast enough and not in line with the well-known markets / IPR related risks from the EV world.

Capital: Intellectual, Social and Relationship Material Issue: Innovation management

5. Regulatory risk

A sudden change in policies and more stringent regulations around EV and ICE as well as environmental and legal regulations in India and International markets can impact the business and sales. This necessitates having in-depth knowledge and preparedness to comply with such regulations. Further, ambiguity on regulatory requirements or failure to meet the timelines of compliance, such as for BS6, OBD2B and alternate fuel requirements, can impact sales.

Capital: Manufactured

Material Issue: Regulatory compliance, climate change, energy and emissions, responsible use of materials

6. Labour unrest risk

Being engaged in Iabor-intensive business, the occurrence of labour unrest can halt Companys operations and impact its business. It has witnessed such a crisis in the past and can face the same in future.

Capital: Human

Material Issue: Manufacturing efficiency, human rights

7. Profitability

The Company faces the risks of lower profitability of the EV business at a consolidated level considering the high raw material cost and the low selling price in India. Capital: Financial and Manufactured Capital Material Issue: Economic Performance

8. Cyber security and data privacy risk

The Companys IT assets and systems need to be secured end-to-end to prevent cyber security threats and data protection risks. Potential threats from cyber-attacks, privacy breaches and new laws on data privacy have dramatically raised the hazards to information security.

There is always a possibility of a loophole being identified and exploited, which can severely disrupt the business operation.

Capital: Intellectual

Material Issue: Ethical business practices/corporate governance

9. Human resource risk

The availability of a skilled workforce is crucial for sustained operations and production. Shortage of skilled workforce, high attrition, or lack of the right skills may disrupt the Companys operations, productivity, and growth prospects and may damage its brand reputation.

The Company also faces risk relating to succession planning for the key positions, attrition of key talent or critical workforce. Additionally, inability to train employees on emerging technologies including EV can lead to their redundancy. The challenge of attracting talent for niche skills and long lead time for recruitment may further impact EV-related ambitions.

Capital: Human

Material Issue: Attraction and retention of talent

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 2022-23, EML 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. The risk control matrix and standard operating procedures cover Royal Enfields operations in India and Thailand. 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 reviewed controls concerning financial reportingare 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.

Human Resources

The Company has a well-designed Human Resources practice that promotes the Royal Enfield culture and strengthens the ‘Being Eicher values in the organisation. The Company has established an empowered, synergetic, harmonious and transparent work environment that values meritocracy and innovation. This drives the employees passion about the brand and inspires them on a quest to take it to greater heights.

The Company has a robust talent management process to attract, retain, and foster right talent across roles. Multiple training programmes are conducted to enhance people skills and capabilities including Kaizen and REImagine, that inspire them to think beyond limits and make improvements across streams. Moreover, the Company has Leadership Development programmes to create a pipeline of young leaders.

EML provides platforms for employees to give feedback through engagement survey and ‘Listen, Learn and Act initiative which help gauge their satisfaction and create a collaborative workplace. Further, it ensures transparently felicitating and rewarding the employees for their contributions and long-standing commitment. The Company also undertakes various sustainability and engagement initiatives to enhance their satisfaction and motivation levels.

Health, safety, and security of employees are a priority and ensured through implementation of benchmarked practices including Occupational Health and Safety (OHS) management system. The Company also extends its safety priority to the external stakeholders that may be impacted by its operations.

REConnect - Employee Engagement Survey

REConnect is an Employee Engagement Survey platform that enables EML employees to express their opinions, expectations, and suggestions openly. The survey recorded 96% participation rate in FY 2022-23 as against 95% in the previous year. The Company has achieved a score of 92% for Employee Engagement, indicating that EML continues to be an Employer of Choice. The results of REConnect survey highlight valuable insights, which help the Company in action plan implementation and accelerate the speed of projects. Moreover, the Companys team-level action planning is in progress.

Career Portal

25,000 candidates visited the Companys career portal and 3,000 applied for various positions every month in FY 2022-23.

Learning & Development

During FY 2022-23, the Company provided 1 lakh hours of training to its workforce. It conducted Leadership Development Programs for senior leaders and high-potential employees. It also provided special upskilling for EV resources and organised Kaizen Convention with a journey of 18,000+ Kaizen initiatives in FY 2022-23. The Company participated in International Convention on QC Circles 2022 and won 4 Gold awards.

Dealership Sales & Service Excellence

Royal Enfield established a first-of-its-kind Experiential Training Hub - Power Train at HITS, Chennai. This training centre aims to provide experiential learning and impart technical know-how of Royal Enfield motorcycles. It also conducted first-of-its-kind ‘Super Squad Skill Contest for sales and service dealer personnel. Further, soft skills training is provided for service consultants. The Company set up RE-Skill Development Centre in Lucknow and Coimbatore and Satellite Training Centre in Nagpur. It also initiated HRMS/LMS pilot for the dealer workforce in Madhya Pradesh and Kerala.

Business

The Company operationalised RELab in London. Royal Enfields Vallam plant won the Platinum award for ‘Future Ready Factory from Frost & Sullivans India Manufacturing Excellence Awards 2022. The Company also won ‘Human Capital Award in ESG 2023. Further, it signed a long-term settlement with the workers union, which reflects its commitment to efficiency and the sound relationship between EML and its people. The Company inaugurated its facility in Phase 3 at Vallam Vadagal.

SUSTAINABILITY INITIATIVES

EML made collective endeavours during FY 2022-23 to establish a resilient business eco-system and deliver positive results towards its Environmental, Social, and Governance (ESG) vision. The Company continues to adopt conscious business processes and strives to minimise its environmental footprint, incorporate eco-friendly practices, and undertake multiple social initiatives. As an advocate and enabler of Pure Motorcycling, Royal Enfield takes responsibility for promoting a healthy balance between people, machine, and terrain.

It undertook various environmental initiatives during the year including:

Energy Management System

EMLs Energy Management System (EMS) ensures monitoring, control, and optimisation of energy consumption to reduce its carbon footprint. EML has also steadily transitioned towards renewable energy and adopted circular principles in energy use. It is committed to using energy-efficient devices and systems and continually invests in their upgradation. It is further exploring cleaner alternative fuels to reduce carbon emissions.

Emission management

EML is committed to reducing carbon emissions arising from upstream and downstream activities. It continues to explore new ways of achieving resource efficiency and environmental protection. It tracks the release of particulate matter, sulphur oxides (SOx), and nitrogen oxides (NOx) produced in its operations, and maintains them below the prescribed limits set by Tamil Nadu

Pollution Control Board (TNPCB).

Water management

EML ensures efficient use of water across all its manufacturing plants and headquarter in Chennai. 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. The

Companys efforts led it to become 5x water positive in the last four years.

Waste management

EML ensures circular economy through the principles of ‘Reduce, Reuse and Recycle in all operational activities. It is focussed on optimising resource usage at every stage and to minimising waste generation. EML treats waste as per governmental guidance and compliance including through co-processing in cement kilns, biogas plants and vermicompost. 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 paper and plastic consumption.

Passion with Responsibility

UNESCO Partnership - In a first-of-its-kind endeavour, UNESCO and Royal Enfield have come together in a unique partnership to promote and safeguard the Intangible Cultural Heritage of India, beginning with the Himalayas. Royal Enfield aims to enable 1 million members of its global motorcycling community to act as agents of change and to take action to help regenerate iconic landscapes like the Himalayas and the communities within them. UNESCO and Royal Enfield flagged off ‘The Great Himalayan Exploration ride at the iconic Victoria Memorial in Kolkata.

Womens Safety and Gender Equality Awareness with the National Commission of Women - In an attempt to create a safe space and a gender-neutral society, Royal

Enfield partnered with NCW and State Police Department for a Gender Equality and Women Safety Awareness Ride across four major cities Delhi, Pune, Chandigarh, and Bengaluru. This drive was a huge success in all locations and saw the presence of senior police officials in all regions. Rekha Sharma, Chairperson of the National Commission for Women graced the occasion with her presence in Chandigarh. 7 media attended the event (Chandigarh); along with 12 hyper-local creators from all three cities.

Sustainability scores and ratings

EML is listed in the DJSI Emerging Markets Index for the second year in a row and has maintained its position among the top 3 automotive sector leaders in India and the top 10 globally. Its ESG score is 62 in the DJSI assessment for 2022.

EML is rated "A" and is among the top 10 auto companies globally in MSCI ratings.

EML is given a low-risk ESG rating of 13.4 by Sustainalytics, and ranks #8 out of 89 in the Automotive Industry Group.

FINANCIAL REVIEW

Eicher Motors Limited registered its highest ever annual volumes in FY 2022-23 at 8,24,066 units backed by success on new motorcycles - Hunter 350 and Super Meteor 650 in the domestic as well as international markets. Revenue for FY 2022-23 increased by 40% year-on-year growth to Rs. 14,442 crores - another highest ever mark for Eicher Motors.

The strong growth momentum in export markets continued in FY 2022-23. In the last 4 years, our volumes in the International markets increased by over 4x and registered a CAGR (Compounded Annual Growth Rate) of over 43%. Despite turbulent macroeconomic conditions in key markets such as Europe, USA etc., overall volumes in International markets (consolidated) increased to 89,226 units - a growth of 20% over previous year. The revenue from International business increased by 20% YoY to Rs. 2,080 crores and accounted for 14.4% of EMLs consolidated revenues.

In a bid to grow its non-motorcycle segment share, your

Company undertook a slew of initiatives across after-sales & service, genuine motorcycle accessories (GMA), and apparel businesses. Improvement in parts availability, Ride sure programme, expansion of accessory portfolio and apparel range, and retail distribution are steps in the right direction to enhance customer experience. A great acceptance and rising penetration of all such initiatives has underpinned a healthy performance of the non-motorcycle business. Total revenue from spares and services, apparel, accessories and others increased by 29% YoY to Rs. 2,041 crores in 2022-23.

Earnings before Interest, Tax, Depreciation and Amortisation ("EBITDA") of your Company increased by 59% to Rs. 3,444 crores in 2022-23 from Rs. 2,172 crores in 2021-22. EBITDA margin also increased to 23.8% in 2022-23 from 21.1% in 2021-22. Amidst sustained increase in commodity prices in the first half of FY 2022-23 and elevated costs of operations, due to shortage of components and higher freight expenses, your Company delivered improvement in the profitability. Successive pricing actions by your Company 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 74% to Rs. 2,914 crores in FY 2022-23 from Rs. 1,677 crores in

FY 2021-22. An increase in Revenue, EBITDA, and higher contribution from your Companys JV with Volvo AB - Volvo Eicher Commercial Vehicles have uplifted the profit growth over last year. As a result, Eicher Motors consolidated EPS for the year increased by 74% to Rs. 107 / share.

Your Companys financialequivalents, and investments (other than in subsidiaries positionremainsrobust withtotal cash and cash and Joint Ventures) of Rs. 10,274 crores. It generated a healthy cash flow from operations at Rs. 2,847 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 Rs. 682 crores.

KEY FINANCIAL RATIOS

In accordance with SEBI (Listing and Disclosure Requirements 2015) (Amendment) Regulation, 2015, a company is required to give details of significant changes* (change of 25% or more as compared to the immediate previous financial year).our Y Company has been reporting the following key financial ratios:

			Standalone		Consolidated
Particulars	UOM	2022-23	2021-22	2020-21	2022-23	2021-22	2020-21
Inventory Turnover Ratio	Times	9.3	7.4	8.2	7.0	6.1	7.3
Current Ratio	Times	1.1	2.0	3.6	1.1	1.9	3.4
Trade Payables Turnover Ratio	Times	4.6	3.7	4.4	4.5	3.7	4.3
Net Capital Turnover Ratio	Times	30.9	3.9	1.4	32.2	3.9	1.4
OperatingProfit	%	20.5%	16.5%	15.6%	20.2%	16.7%	15.3%
NetProfit	%	18.6%	15.7%	15.4%	16.3%	16.3%	15.4%
Return on Equity	%	22.2%	15.4%	15.1%	21.2%	13.8%	12.9%
Return on Capital Employed	%	26.4%	19.2%	18.0%	22.7%	16.8%	15.1%
Earnings per share (basic)	Rs.	95.9	58.0	48.7	106.6	61.3	49.3

*Refer key ratio disclosure in the standalone and consolidated financial statements for details of significant changes.

VECV - DRIVING MODERNISATION IN THE CV INDUSTRY

VE Commercial Vehicles Limited (VECV) is a joint venture between the Volvo Group and Eicher Motors Limited. VECV is a multi-brand, multi-division company and manufactures a complete range of premium, next-generation trucks across 4.9-55T and buses with a seating capacity of 12-72 across light, medium and heavy-duty applications. Apart from manufacturing Eicher and Volvo Trucks and Buses, VECV is engaged in exclusive distribution of Volvo Trucks in India, engine manufacturing and exports for Volvo Group, non-automotive engines and Eicher engineering component business.

In operation since July 2008, the synergy with Volvo group has seen a strong track record in the last 15 years as VECV strives to be recognised as the industry leader driving modernisation in commercial transportation in India and the developing world. The Company has strengthened its credibility through retail excellence, oriented front-end processes, and focus on uptime. The Company has expanded its retail network and now has more than 800 touchpoints across the country and has retained its No.1 position in the dealer satisfaction survey conducted by FADA.

The Commercial Vehicle Industry

The year 2022 had its share of ups and downs and threw some fresh challenges for everyone in the industry. While the effect of the pandemic subsided across the globe, the geopolitical situation in Europe added to uncertainty in supply chains across the world impacting the cost of raw materials and their availability. Despite these challenges, the CV industry has seen growth in FY 2022-23 owing to the governments emphasis on infrastructure, growth-oriented policies, pent-up replacement demand, and macroeconomic expansion in the second half of the year. Additionally, an outlay of Rs. 10 lakh crores for infrastructure development alongside 100 new projects for last-mile connectivity will further boost the CV industry.

VECV Performance

In the financial year 2022-23, VECV saw a 40% growth over the previous year and outgrew the Industry registering sales of 79,623 units. The growth has been robust and consistent during the year and the Company has been able to sustain its leading position in light and medium-duty trucks while increasing market shares in the Buses and HD Trucks segments. The exports, however, saw a decline of 41% owing to geo-political and macroeconomic challenges in the International markets.

In FY 2022-23, the Company achieved its highest-ever Eicher Trucks and Buses sales of 77,760 units beating its previous peak of 71,743 units in FY 2018-19. In the Heavy Duty trucks segment, the Company has sold 20,675 units (previous peak of 14,507 units in FY 2018-19) gaining a market share of 8.3% in the segment. Higher spending on infrastructure and road construction, higher mining activity of coal and iron ore, higher demand in the FMCG and E-Commerce segments, and the shift toward more efficient logistics driving the replacement demand have been some of the major factors driving the growth in the segment.

In the Light and Medium duty trucks segment, the Company has sold 37,318 units (previous peak of 34,546 units in FY 2018-19) gaining a market share of 31.5% in the segment. Last-mile connectivity has seen sustained growth due to rapid growth in E-Commerce post the pandemic which is driving the growth of the segment. The Company has strengthened its offering in the segment with the new Pro 2049 12ft variant bus. The industry has also seen a shift toward higher gross vehicle weight (GVW) driving the demand for medium-duty trucks which now contribute to almost half of the LMD trucks. Pro 3018 is the latest addition to our MD trucks range which has now also been acknowledged as the ICV Cargo Carrier year of the year.

In the bus segment, VECV sold 14,924 units (previous peak of 12,270 units in FY 2018-19) and has maintained its place as the 2nd largest player in the segment with 23.8% market share owing to its strong performances in the Light and Medium Duty and Private Heavy Duty buses thanks to the class-leading products we have introduced like our intercity coaches. The increase in mobility to schools and offices, and intercity travel picking up have been driving factors in the bus segment.

The Company has sold its highest-ever Volvo trucks of 1,710 units beating its previous peak of 1,242 units in FY 2018-19. Volvo Eicher Powertrain (VEPT) delivered 53,739 units in FY 2022-23 seeing a growth of 24% YoY.

	Industry		VECV		Market Share		VECV	Industry
Models	FY 2022-23	FY 2021-22	FY 2022-23	FY 2021-22	FY 2022-23	FY 2021-22	Growth	Growth
Domestic
Light Duty Trucks
(3.5 - 5 Tonnes)	7,652	9,551	1,620	1,904	21.2%	19.9%	-14.9%	-19.9%
Light & Medium Duty Trucks
(5 - 18.5 Tonnes)	1,18,333	1,02,241	37,318	30,880	31.5%	30.2%	20.8%	15.7%
Heavy Duty Trucks (= 18.5
Tonnes) - Eicher & Volvo	2,47,858	1,64,681	20,675	12,099	8.3%	7.3%	70.9%	50.5%
Buses (Eicher & Volvo)	62,601	17,445	15,077	3,768	24.1%	21.6%	300.1%	258.8%
Domestic Total	4,36,444	2,93,918	74,690	48,651	16.7%	16.1%	53.6%	48.5%
Exports	37,570	49,281	4,933	8,426	13.1%	17.1%	-41.5%	-23.7%
Grand Total	4,74,014	3,43,199	79,623	57,077	16.8%	16.6%	39.5%	38.1%

Key business initiatives and launches

In its efforts to be recognised as the industry leader driving modernisation in commercial transportation in India and the developing world, VECV continues to introduce innovative and modern products that improve Customer Value Proposition in various applications. as well as services. During the year, The inauguration of 40 Eicher Skyline Pro E electric buses delivered to the city of Chandigarh.

We continued to expand our product range with the launch of Eicher 13.5m Coach, Volvo 9600 Coach & Sleeper and Pro2000 Series LHD for International markets. Volvo Buses India has launched the next-gen Volvo 9600 platform in India. This all-new, modern platform will spawn factory-built sleeper and seater coaches in 15-metre and 13.5-metre buses and represents the largest and most modern buses in India.

Our continuing focus on improving Dealer Satisfaction and Uptime for our Customers is showing in high levels of service and parts sales as our customers leverage our expanded dealer network.

Volvo and Eicher are committed to the rapidly modernising Indian logistics ecosystem through application-specific alternate fuels & smart support solutions. The Company is leading the decarbonisation of the CV industry, where we think that a variety of alternative fuels, such as LNG, ethanol, and hydrogen, are crucial. VECV is well-positioned to seize this opportunity and perform a transformative role for the Indian CV industry with multiple new products that were showcased in this years Auto Expo, showcasing a glimpse of our capabilities through multiple future-ready product line-ups aligned with the Government of Indias vision for efficient logistics and decarbonised Auto Industry: Unveiled Indias longest Eicher 13.5m electric Intercity Coach.

Unveiled Eicher 2049 (4.9Tonne GVW). Built on Eichers proven EV platform, the Eicher Pro 2049 electric 4.9 T

GVW truck is specifically developed for economical and clean last-mile applications.

Also on display is the Eicher Pro 8055 LNG/CNG truck designed specifically for meeting the needs for clean transport in long-haul applications. While managing longer range on LNG, the Eicher Pro 8055 is capable of transitioning to use CNG fuel by the simple turn of a switch - well suited to leverage the rapidly expanding CNG distributor network.

Volvo Trucks showcased the Volvo FM LNG 420 4X2 Tractor which is undergoing extensive trials with leading e-commerce operators in long-haul hub-to-hub operations. The Volvo LNG solution is based on the unique Diesel-cycle technology that provides 15-20% improvement in fuel economy over Petrol or Otto-cycle technologies.

Volvo Buses presented its state-of-the-art 15m Volvo 9600 luxury coach. Built on the internationally acclaimed Volvo 9600 platform, the coach offers First Class luxury seating for an exclusive travel experience. VECV also showcased a prototype Eicher Hydrogen Fuel Cell Truck and Hydrogen ICE technology engine. These next-gen technologies are aligned with the Government of Indias Green Hydrogen Mission and offer a promising path to zero tail-pipe emissions.

As a successful Volvo Group and Eicher Motors JV, VECV was the first to build and introduce modern BS VI technology in India. Eicher and Volvo trucks and buses are backed by our 100% connected ecosystem which helps deliver on our promise of Productivity and Uptime for our customers. The electrification of the CV industry has already started with buses, and we believe that a range of alternative fuels, including LNG, Ethanol, and Hydrogen is essential to lead decarbonisation of the CV industry. Under the banner of Smart Sustainability, VECV is well poised to harness this opportunity and play a transformative role in the Indian CV industry.

Digitisation

The Company continues its focus on securing vehicle uptime for our customers through our Uptime Centre which monitors our fleet of 100% connected vehicles backed by strengthened parts availability and vehicle reliability. All Eicher and Volvo trucks and buses are supported with a wide variety of support solutions such as remote and predictive diagnostics. Enabled by the industry-first 100% Connected Fleet and state-of-the art Uptime Centre, these App-based smart support solutions ensure higher productivity and efficiency for trucks, buses, drivers, and fleet managers, further reducing their collective carbon footprint.

Awards and Accolades

At VECV, we continue to drive modernisation by delivering trucks and buses which are 100% connected and supported by a 24X7 Uptime Centre in order to ensure superior uptime and higher productivity for our customers. We are glad that our range of trucks and buses have been acknowledged in this years Apollo Tyres CV Awards with 6 prestigious awards across various categories:

ICV Cargo Carrier of the Year for Eicher Pro 3018 M&HCV Tipper of the Year for Volvo FMX 460 8X4 Range Coach of the Year for Eicher Intercity Coach 13.5m

Special Application CV of the Year for Eicher Pro 6028T

Boom Pump

Coach of the Year (Premium Offering) for VOLVO 9600 seater and sleeper coach

Special recognition for VOLVO FM 420 4X2 LNG

Tractor Head

Financial Review

In the financial year 2022-23, VECV saw performance despite headwinds. VECVs revenue from - operations was Rs. 18,952 crores in FY 2022-23, up by 48.9% over the previous years revenue of Rs. 12,724 crores. EBITDA for the year was at Rs. 1,375 crores, 92.1% higher than Rs. 716 crores last year and the EBITDA Margin was at 7.3% against 5.6% last year. Profit after tax stood at Rs. 579 crores as against Rs. 111 crores last year.

The main business segments of the Company showed good growth in the year with the Company registering its highest-ever sales in the HD, LMD trucks, and in the buses segment. The other business segments have also achieved significant growth in FY 2022-23, with Eicher parts achieving its highest-ever sales at Rs. 1,166 crores and Volvo parts registering sales of Rs. 582 crores in FY 2022-23. Eicher Engineering Components business also achieved its highest-ever sales of Rs. 1,600 crores in FY 2022-23.

CAUTIONARY STATEMENTS

The Management Discussion and Analysis may contain some statements describing the Companys views of the industry, objectives, and expectations which may be ‘forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ substantially or materially from those either expressed or implied in the

Statement depending on the factors that could affect the Companys operations such as supply and demand situation, input prices and their availability, changes in government regulations, tax laws and other factors such as Industrial relations and economic developments etc. Investors should bear the above in mind.