Eicher Motors, Volvo Group announce new 50:50 JV for vehicle financing business in India

Eicher Motors Limited and Volvo Group have announced plans to form a new 50:50 joint venture focused on financing, leasing, and other financial services operations in India. The move marks a further expansion of the long-standing partnership between the two companies, which already collaborate through Volvo Eicher Commercial Vehicles.

As part of the proposed arrangement, Eicher Motors’ board has approved an investment of up to ₹750 crore to acquire a 50 per cent equity stake in Volvo Financial Services India. The new joint venture will function as the captive financing arm for products from VECV, Eicher Motors, Volvo Group, and Royal Enfield in India.

Siddhartha Lal, Chairman of Eicher Motors Ltd., said the new venture would strengthen the company’s presence across the automotive value chain while improving customer experience through financing solutions.

He said, “Expanding our highly successful 18-year partnership with Volvo Group, Eicher is now entering the vehicle financing business in India through a new joint venture. This JV combines Volvo’s global financial services expertise and Eicher’s local knowledge and network. The JV will serve Eicher, Volvo, and Royal Enfield customers in India and presents an opportunity for EML to operate in an important segment of the value chain, using financing as a lever for a superior customer experience."

Volvo Financial Services serves as the captive finance arm of Volvo Group globally and currently operates in nearly 40 markets. As of the end of calendar year 2025, VFS reported assets under management (AUM) of around USD 27.4 billion worldwide. Its India operations, which have been active for over a decade, recorded an AUM of ₹1,825 crore as of March 31, 2026.

According to the companies, the joint venture aims to combine VFS’ expertise in financial services with Eicher’s product portfolio, dealer network, and understanding of the Indian market. The collaboration is expected to help customers access financing solutions more easily while also streamlining decision-making processes.

The transaction remains subject to regulatory approvals. Once completed, fresh equity shares of the proposed joint venture entity will be issued to Eicher Motors, with the final investment amount to be determined at the time of closing.

Eicher Motors is the parent company of Royal Enfield and also holds a joint venture with Volvo Group through VECV. Apart from manufacturing Eicher-branded trucks and buses, VECV also handles Volvo Trucks and Volvo Buses operations in India, engine manufacturing, exports, and component businesses.

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