Göteborg, Sweden – The Volvo Group has signed a final agreement with Indian vehicle manufacturer Eicher Motors, covering establishment of a new Indian joint venture company. The joint venture, with the proposed name VE Commercial Vehicles Limited, comprises Eicher Motors’ entire truck and bus operations, and the Volvo Group’s Indian truck sales operations and service network for trucks and buses. Eicher Motors’ production of motorcycles will not be included.
Volvo will have direct ownership of 45.6 per cent of the company. It is also acquiring 8.1 per cent of Eicher Motors from the majority owner, giving it a direct and indirect ownership interest of 50 per cent in VE Commercial Vehicles. Volvo will transfer its Indian truck dealer network, and its truck and bus service network, into the joint venture company.
“This agreement provides a very solid platform for further growth on the Indian market for heavy trucks, which is the fourth largest in the world,” said Pär Östberg, member of the Volvo Group Executive Management. “India is investing heavily in improving its infrastructure, and together with Eicher, we have highly favourable conditions to further strengthen our position on the Indian market.”