Incorporated in 1955 as Royal Enfield Motors by the Madras-based Vishwanathan group to manufacture 350 cc motorcycles, Eicher entered into a collaboration with the Eicher group in 1990. In 1993, Eicher group acquired a majority stake in the company. In Apr.'95, the Eicher group merged Royal Enfield Motors (REML) with Eicher Tractors to form Eicher Ltd. REML, famous for its 350-cc motorbikes, has its plant at Thiruvottiyur, Tamilnadu.

In 1986, it entered into a collaboration with Mitsubishi Heavy Industries, Japan, to manufacture portable engines and portable generating sets. In 1993, Eicher started manufacturing 500 cc motorbikes. It developed 535 cc and 624 cc superbikes in technical collaboration with Fritz Egli, Switzerland and also designed and developed new models in collaboration with Austria-based AVL. 

In Nov.'96 the company succesfully launched Shahenshah - New styling 39 HP(SAE) tractor an important milestone which was well received in the market. Another variant of 39 HP(SAE) tractor for wetland puddling - model 369 was also launched during the year by Hyderabad Plant for meeting requirements of Southern market. The company has modernised its Chennai plant in 1996-97.

To widen its range of commercial vehicles, group company Eicher Motors roped into heavy commercial vehicles (HCVs) taking on heavyweights like Telco, Ashok Leyland and Johnny-comelately Volvo. The engine is being developed in technical collaboration with AVL of Austria. 

Flagship Eicher Ltd has developed 42 hp and 50 hp tractors.The engines for these tractors have been developed with technology from Ricardo of the UK. In fact, the engines of all existing tractors are also being improved for higher fuel efficiency. In yet another technical collaboration, this time with Valtra of Finland, Eicher Ltd is launching a 60 hp tractor by the end of next year. It had set up a new motorcycle plant near Jaipur. Together with its Chennai plant, it will have the capacity to make 50,000 motorcycles per annum by the end of this year. 

In addition to the old 24 and 30 hp models, the 241, 242, 243, and the 312, as well as the 35 hp models 364 and 369, in January 1999 the company introduced the 38-42 hp model 485. Eicher Tractors is being assembled at three units, the 30,000-a-year-capacity unit at Faridabad, the newly commissioned plant at Bhopal, which in the first year is expected to reach 6,000 capacity, and the 2,000-units-a-year plant at Hyderabad.

The new plant which was set up at Jaipur for manufacture of the A350 model motorcycle with a 350-cc engine developed in collaboration with AVL Austria had commenced the commercial production in Jan.'2000.

The company had launched a new 3 cylinder 35hp product with new styling, which was well accepted in the market and the performace was also upto the level.The company has also launched 368 modesl(35hp) coupled with the recently established 485(42hp) and Europower 6100(61 hp) in the market.'Power Bike' which was introduced in October 2000 had a few changes in its aesthetics and new colour options have been incorporated for creating excitement in the market place.

The Chennai Unit of Royal Enfiled Motors was awarded certification in Quality System in line with ISO 9001 by DNV for manufacturing operations,design,marketing and customer service. The Gear Business has also got orders worth Rs.12 crores from leading international OEM this year.

The company has restructured its capital during August 2004 and as per the scheme of arrangement,2(Two) fully paid up Equity shares of Rs.10/- each of Eicher Motor Limited will be issued for every 5(Five) existing Equity shares of Rs.10/- each held in the company,prior to re-organisation of capital.Re-organisation of Share Capital as under: Cancellation of Rs.4/- each of every equity share of Rs.10/- each i.e., 18569374 equity shares of Rs.10/- each will be reorganised to Rs.6/- each and consolidation of 18569374 equity shares of Rs.6/- each fully paid up into 11141624 equity shares of Rs.10 each fully paid up.