Eicher Motors - Updates

Eicher Motors Ltd has informed BSE that the Board of Directors of VE Commercial Vehicles Ltd. ('VECV'), a subsidiary Company of Eicher Motors Ltd., ('EML') in its Board Meeting held on October 30, 2009 have decided to explore the further business opportunities in the field of Engineering Design Services along with Vinn Group AB of Sweden (a joint venture company between Vinn Group and Volvo Technology Transfer AB (VTT), a wholly owned subsidiary of AB Volvo) for aligning its Engineering Design Services Division alongwith EES Inc., USA and its two subsidiaries in China (collectively referred as 'EES Division') that currently contributes only around 2% of VECV consolidated revenues and around 1.7% of EML consolidated revenues.

For this purpose, a non-binding Memorandum of Understanding ('MOU') is being signed amongst Vinn Group AB of Sweden, VECV and their respective shareholders.

The objective of the MOU is to explore the alignment of EES Division of VECV with Vinn Group AB, Sweden through an efficient structure.

The Board of Directors of EML in their meeting held on October 31, 2009 after deliberations authorized Mr. Siddhartha Lal, Managing Director of the Company to take all necessary steps with respect to above.