The Board of Directors of VE Commercial Vehicles Limited (VECV), a material unlisted subsidiary of Eicher Motors Limited, at its meeting held on May 18, 2026, approved an increase in VECV's shareholding in VE Connected Solutions Private Limited (formerly known as Aquila Mobility Solutions Private Limited) from 51% to 74%. The enhanced stake is aimed at boosting connected vehicle technology by enabling VECV to develop and implement cost-effective, innovative products and services, resulting in enhanced value to customers. The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

About VE Connected Solutions

VE Connected Solutions Private Limited (VECS) was incorporated on May 9, 2023, and was established as a joint venture between VECV and iTriangle Infotech Private Limited on May 15, 2024, commencing operations in August 2024. The company operates in the Automotive Connected Solutions industry and is engaged in a broad range of technology-driven services and products. Its business activities include:

• Software design, development, customization, implementation, maintenance, testing, and benchmarking
• Connected services pertaining to Internet of Vehicles (IoVs), telematics, and connected vehicles
• Compliance-related services for automotive and connected vehicles
• Products and services related to electric and connected vehicles, automotive compliance, fuel and cargo security, and driver state monitoring systems
• Dealing in its own and third-party software and hardware packages

VECS has a presence in India and has demonstrated strong revenue growth since commencing operations, as reflected in the turnover history below:

Transaction Details

Under the proposed acquisition, VECV will acquire an additional 23% shareholding in VECS from iTriangle Infotech Private Limited through a cash consideration. The key terms of the transaction are summarised below:

No governmental, regulatory, or statutory approvals are required for this transaction. The acquisition is being undertaken at arm's length, and the promoters and promoter group of Eicher Motors Limited have no interest in the transaction.

Post-Acquisition Shareholding Structure

Upon completion of the proposed acquisition, the shareholding pattern of VECS will be as follows:

Regulatory Disclosure

The intimation was submitted to BSE Limited and the National Stock Exchange of India Ltd on May 18, 2026, in compliance with Regulation 30 read with Para A of Part A of Schedule III of the SEBI Listing Regulations and SEBI Circular No. SEBI/HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. The disclosure was signed by Atul Sharma, Company Secretary of Eicher Motors Limited.

Eicher Motors Limited has announced a strategic manufacturing expansion through a proposed greenfield facility at Tada (Tirupati), Andhra Pradesh. The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, on May 18, 2026. Royal Enfield, a division of Eicher Motors and the global leader in the mid-size (250cc–750cc) motorcycle segment, plans to invest approximately ₹2,500 crores for this greenfield expansion, to be financed entirely through internal accruals. The project will be implemented in a phased manner, calibrated to future demand and market conditions, subject to formal approval by the Board of Directors.

Existing Capacity and Utilisation

The company's existing manufacturing capacity stands at around 14.6 Lakh motorcycle units per year, which is currently close to full utilisation. Previously announced brownfield capacity addition projects — including a ₹958 crores investment for capacity expansion in Cheyyar, Tamil Nadu announced in February 2026 — are expected to increase total capacity to up to 20 Lakh motorcycle units per year across all plants in Tamil Nadu by the end of FY 2027-28. The near-full utilisation of existing capacity underscores the urgency behind the company's long-term capacity planning.

Greenfield Expansion Details

The Government of Andhra Pradesh has approved a land parcel of 215.7 acres at Tada, Andhra Pradesh for the proposed greenfield expansion. The detailed plan for the proposed capacity addition is yet to be finalised and will be taken up by the Board of Directors in forthcoming meetings convened for this purpose. The following table summarises the key parameters of the proposed expansion:

Management Commentary

Commenting on the expansion, B. Govindarajan, Managing Director – Eicher Motors Ltd. and Chief Executive Officer – Royal Enfield, said, "Royal Enfield's philosophy has always been to stay connected with our community to deliver the best possible products and experiences. We currently operate four world-class manufacturing facilities in Tamil Nadu, with a total projected capacity of 2 million units annually. This investment in Andhra Pradesh will augment that capacity and provide the impetus for our next phase of growth. We are grateful to the Government of Andhra Pradesh for their support and partnership as we strengthen our presence in a state with immense potential. Having already established over 100 retail and service outlets and more than 1,200 direct and indirect employment opportunities, we are proud to contribute to its industrial and economic landscape."

Recent Performance and Global Presence

In FY'26, Royal Enfield delivered its second consecutive year of over one million motorcycles, crossing 1.20 million units. The company ranked highest in two-wheeler initial quality in the 2025 J.D. Power India study and secured the top position in the FADA Dealer Satisfaction Survey. Royal Enfield also ranked #3 among the World's Strongest Automobile Brands in the Brand Finance Automotive Industry 2026 report. The following table highlights key operational and performance metrics:

Strategic Rationale

Eicher Motors has stated that this investment is necessary for the company's readiness towards long-term growth prospects. The greenfield project at Tada complements the ongoing brownfield expansions in Tamil Nadu, positioning the company to address anticipated demand beyond the capacity levels achievable through existing expansion programmes. The final capacity addition quantum and timeline will be determined once the Board formally approves the plan in the upcoming meetings.