The Joint venture between Eicher Motors and Volvo group, VE Commerical Vehicles, has geared up their expansion plans in India. Eicher Motors currently holds about 2.5 percent market share of commercial vehicles in the country out of which 90 percent is dominated solely by Tata Motors and Ashok Leyland.
VECV also includes commercial vehicles, engineering components and solutions from Eicher Motors and truck sales and distribution network from Volvo. The joint venture company plans to launch two new vehicles, 6X4 tipper and 6X4 tractor trailor within in next 18-24 months.
!["Eicher]("https://imgct2.aeplcdn.com/img/500/news/Eicher_truck_02.jpg"?q=75)
Eicher Motors has its plant located at Pithampur, near Indore, MP that manufactures about 180 vehicles per day. Eicher products shall continue to be manufactured at Pithampur facility. Eicher Motors currently owns the Royal Enfield motorbike division and shall launch its two new models in coming few months.
VECV is the joint venture company between Eicher Motors and the Swedish Volvo group where EML holds 54.4 per cent equity and Volvo has 45.6 percent stakes. The JV has an equity value of $768 million where EML shall invest $418 million and Volvo shall contribute $350 million.
