Eicher Motors disputes Rs 1.64 crore customs demand order

eicher motors has received a demand order of Rs 1.64 crore from the Principal Commissioner of Customs (Preventive), Kolkata, West Bengal. The order, received via email on June 3, 2026, pertains to a preferential tariff exemption claimed by the company on the import of goods for a single shipment during the year 2020. The company stated that the demand is not maintainable based on its assessment and that it is evaluating all options, including filing an appeal.

Breakdown of the demand

The order specifies an aggregate amount of Rs 1.64 crore, which is split evenly between duty and penalty. The breakdown of the demand is as follows:

Component	Amount	Section of Customs Act, 1962
Duty demand	Rs 0.82 Crore	Section 28(4)
Penalty	Rs 0.82 Crore	Section 114A
Total	Rs 1.64 Crore

Company response and impact

Eicher Motors has contested the demand, asserting that it is not maintainable. The company confirmed that it did not envisage any relevant impact on its financials, operations, or other activities as a result of this order. The disclosure was made to the exchanges under Regulation 30 read with Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.28%	-4.16%	+0.01%	+0.40%	+32.80%	+156.89%

VE Commercial Vehicles, an unlisted subsidiary of eicher motors , reported a 7.8% increase in total sales volume for May 2026, reaching 7,978 units compared to 7,401 units in May 2025. The growth was primarily driven by domestic demand, which rose 9.1% to 7,375 units, offsetting a 17.2% decline in exports. Year-to-date sales for the fiscal year 2026-27 stood at 15,296 units, up 7.4% from 14,247 units in the corresponding period of the previous fiscal year.

Domestic Sales Performance

Domestic sales of Eicher trucks and buses, including electric vehicles, totaled 7,375 units in May 2026, up from 6,758 units in the prior year. The SCV and LMD truck segment (under 18.5T) led the growth with a 16.1% increase to 3,757 units, while HD trucks (18.5T and above) grew 7.9% to 1,620 units. The LMD bus segment remained flat at 1,886 units, whereas HD bus sales fell 17.6% to 112 units.

Export Trends

Exports faced significant headwinds, dropping 17.2% to 414 units in May 2026 from 500 units a year earlier. The SCV and LMD segment declined 11.4% to 256 units, while bus exports plummeted 69.5% to 36 units. However, HD exports showed resilience, surging 31.2% to 122 units. Year-to-date exports fell 19.2% to 776 units.

Volvo Trucks and Buses

Sales of Volvo trucks and buses, part of the VECV portfolio, grew 32.2% to 189 units in May 2026 from 143 units in May 2025. The year-to-date sales for this segment reached 348 units, a 27.9% increase over the same period last year.

Segment	Actual May'26	Actual May'25	Growth (%)	Actual 2026-27	Actual 2025-26	Growth (%)
Total Eicher Trucks and Buses	7,789	7,258	7.3%	14,948	13,975	7.0%
SCV/ LMD Trucks (< 18.5T)	3,757	3,236	16.1%	7,000	5,986	16.9%
HD Trucks (≥18.5T)	1,620	1,502	7.9%	3,136	2,821	11.2%
LMD Bus	1,886	1,884	0.1%	3,862	3,910	-1.2%
HD Bus	112	136	-17.6%	174	298	-41.6%
Total Domestic	7,375	6,758	9.1%	14,172	13,015	8.9%
Total Exports	414	500	-17.2%	776	960	-19.2%
Total Volvo Trucks & Buses	189	143	32.2%	348	272	27.9%
Total VECV (Inclusive of EVs)	7,978	7,401	7.8%	15,296	14,247	7.4%