Business
Volvo Financial Services and Eicher Motors Limited announce joint venture for financial services in India
Volvo Financial Services (VFS) and Eicher Motors Limited today announced the intent to form a 50-50 joint venture to provide financing, leasing and other financial services for customers of Volvo and Eicher-branded commercial vehicles within the Indian market. Pending regulatory approval, the JV will be created by VFS India issuing new shares to Eicher in exchange for an equity investment of up to Rs 750 crores or approximately 730 MSEK. The exact investment will be determined at the time of clo
About this update from Eicher Motors Limited
[{"type":"text","content":"GOTHENBURG, Sweden, May 21, 2026 /PRNewswire/ -- Volvo Financial Services (VFS) and Eicher Motors Limited today announced the intent to form a 50-50 joint venture to provide financing, leasing and other financial services for customers of Volvo and Eicher-branded commercial vehicles within the Indian market. Pending regulatory approval, the JV will be created by VFS India issuing new shares to Eicher in exchange for an equity investment of up to Rs 750 crores or approximately 730 MSEK. The exact investment will be determined at the time of closing per the transaction documents. The impact on earnings at the closing of the transaction will not be significant and will not have any cash flow effect on the Volvo Group.","length":724,"tagName":"p"},{"type":"text","content":""VFS has developed a strong portfolio in India by leveraging our global presence and working together hand-in-hand with our Volvo customers and dealers," said VFS President, Marcio Pedroso. "We believe now is the time to sharpen our focus on the Eicher brand as well, with our intended partnership serving as a springboard for bringing innovative financial services and solutions to both current and new customers and dealers, positioning us well to create long-term value in the growing Indian market."","length":523,"tagName":"p"},{"type":"text","content":"As the captive finance arm of the Volvo Group, VFS has a deep and thorough understanding of customers' operations, allowing it to provide tailored financial and insurance solutions and services.","length":198,"tagName":"p"},{"type":"text","content":"With its strong portfolio of truck and bus models, Eicher is a leading manufacturer of transport solutions. Its products are sold through an extensive network of dealers across the Indian market.","length":195,"tagName":"p"},{"type":"text","content":"The proposed JV will combine VFS' knowledge and customer focus with Eicher's commercial vehicles and dealer network to capture new business in a more aligned and efficient manner. The JV will also deepen integration to move closer to customers and accelerate decision-making, helping customers more easily access financing solutions that meet the needs of their business.","length":379,"tagName":"p"},{"type":"text","content":"The Volvo Group and Eicher bring nearly 20 years of demonstrated succes...