Volvo India and Eicher Motors Limited signed a joint venture on Monday where Volvo shall invest Rs. 1082.10 crores. The joint venture shall start its operations in July this year and shall be able to tap the Asian markets. This joint venture shall also look into vehicle financing business apart from its manufacturing operations.
Siddhartha Lal, Managing Director and CEO, Eicher Motors and Par Ostberg, Senior Vice-President and Chairman, Trucks Asia, Volvo group signed the joint venture in New Delhi on Monday. EML shall hold 54.4 percent shares and the balance 45.6 percent shares shall lie with Volvo.
“The commercial vehicles business along with related components and design services of EML will be transferred to the joint venture company, which will be an unlisted subsidiary of EML, on a slump basis at a value of Rs. 202.20 crore,” said Siddharth Lal, MD & CEO for Eicher Motors.
