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Informist, Thursday, May 21, 2026

--Eicher Motors to invest INR 7.5 bln for 50% stake in Volvo Fincl Services 

MUMBAI – Eicher Motors Ltd. Thursday announced the formation of a 50:50 joint venture with Volvo group to undertake the financial services business. Eicher will invest up to INR 7.50 billion to acquire a 50% stake in the proposed joint venture, Volvo Financial Services (India) Pvt. Ltd., it said in an exchange filing. The company expects the transaction to be completed by December, subject to approval from the Reserve Bank of India. 

Transaction would be completed subject to approval from the RBI and other conditions agreed in the transaction documents.

"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," Siddhartha Lal, chairman of Eicher Motors said in a press release. "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."

The proposed joint venture is currently owned and controlled by Aktiebolaget Volvo, through its group companies. It is a middle layer non-deposit taking non-banking financial company registered with the RBI and is currently engaged in the business of providing financing, leasing, and other financial services to customers and dealers of AB Volvo and its group entities, and VE Commercial Vehicles Ltd., in India, according to the filing. 

For the December quarter, Eicher Motors reported a consolidated net profit of INR 14.21 billion on revenues of INR 61.14 billion. Thursday, shares of the company closed around 1% higher at INR 6,892 on the National Stock Exchnage.  End

Reported by Arya S. Biju

Edited by Akul Nishant Akhoury

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