Volvo Enters Financing Market

Tuesday 17 June 2008, 00:00 AM by Satish

Volvo plans to expand its commercial financial arm to India. It has undertaken a feasibility study to launch the organised one-stop financing facility for commercial vehicles in India. If the financial unit comes to India, it shall be an independent legal entity with Eicher Motors as its preferred partner. It shall be offering complete financing solution like loans, re-financing, etc. to its customers. This is yet another move from Volvo India to "expand relationship with its customers".

Volvo India plans to expand its market share in India with Eicher Motors and grab at least 15 percent share of Indian auto market by the year 2015. Eicher Motors has 15 percent market share of in heavy vehicles and 27 percent in light and commercial vehicles.

The Joint venture with EMIL shall be effective from July 1 where EMIL shall hold the 54.4 percent stake. The joint venture between the two companies sshall help Volvo India to tap the supplied base of Eicher Motors. Volvo India plans to sell 1 lakh trucks by 2015 as compared to 5000 trucks sold in last decade.

Both the companies shall have independent manufacturing units even after the joint venture. Eicher Motors has its manufacturing plant in Pithampur, near Indore, MP while Volvo India has set up its manufacturing plant in Bangalore.