Eicher Motors delivered a strong performance in its commercial vehicle segment during December 2025, reporting total sales of 10,384 units compared to 8,324 units in the corresponding period last year. This achievement represents a significant year-on-year growth of 24.7%, showcasing the company's robust market presence through its subsidiary VE Commercial Vehicles Limited (VECV).

Overall Sales Performance

The December sales figures demonstrate the company's ability to maintain growth momentum across its commercial vehicle portfolio, with total VECV sales including electric vehicles reaching 10,384 units.

Segment-wise Performance Analysis

The domestic Eicher segment showed particularly strong performance with total domestic sales of 9,527 units in December 2025, representing a 26.3% growth from 7,545 units in December 2024.

Export Performance

The export segment also contributed positively to overall growth, with total exports reaching 650 units in December 2025 compared to 490 units in the previous year, marking a 32.7% increase.

Year-to-Date Performance

For the year-to-date period, total VECV sales reached 69,597 units compared to 61,486 units in the previous year, representing a healthy 13.2% growth. The domestic segment contributed 62,447 units with an 11.3% growth, while exports showed exceptional performance with 5,315 units, marking a 51.3% increase over the previous year's 3,514 units.

Eicher Motors Limited has informed stock exchanges that its material subsidiary VE Commercial Vehicles Limited received a GST demand order worth ₹96.18 crores from tax authorities on December 29, 2025. The order was issued by the Commissioner, CGST & Central Excise, Ujjain Commissionerate, Ujjain, Madhya Pradesh.

Background of the GST Matter

This development follows an earlier disclosure made on July 10, 2025, when VE Commercial Vehicles Limited received a show cause notice (SCN) from the same tax authority. The original notice alleged contraventions of the CGST Act, 2017 provisions pertaining to Financial Year 2017-18 and involved a GST amount of ₹168.19 crores along with equivalent penalty amounts.

The subsidiary submitted its response to the show cause notice, and following adjudication proceedings, the final demand order was issued with a reduced amount.

Details of the Demand Order

The key aspects of the GST demand order are presented below:

The demand order was issued under the Central Goods and Services Tax Act, 2017, read with Madhya Pradesh Goods and Services Tax Act, 2017, and Integrated Goods and Services Tax Act, 2017. In addition to the principal demand amount, the order includes equivalent penalty amounts and applicable interest.

Company's Response and Next Steps

VE Commercial Vehicles Limited has assessed the matter in consultation with legal counsel and concluded that the demand order lacks merit. The company has indicated its intention to file an appeal before the appropriate forum within the prescribed timelines.

The subsidiary's position reflects confidence in its compliance procedures and suggests that the alleged contraventions may not have substantial grounds for enforcement.

Financial Impact Assessment

Eicher Motors Limited has explicitly stated that the GST demand order will have no impact on the financial, operational, or other activities of the company. This disclosure indicates that the parent company does not anticipate material adverse effects from this regulatory matter on its business operations or financial performance.

The reduction in demand amount from ₹168.19 crores to ₹96.18 crores suggests that the adjudication process resulted in a partial favorable outcome for the subsidiary, though the company maintains its position that the entire demand lacks merit.