Eicher Motors Limited and Volvo Group have announced plans to establish a new 50:50 joint venture focused on financing, leasing and other financial services solutions for customers in India’s commercial vehicle and mobility sectors.The proposed venture will operate as the captive financing arm for products manufactured and distributed by Volvo Group, Eicher Motors and VE Commercial Vehicles Limited.
Eicher Motors’ board has approved an investment of up to Rs 750 crore toward acquiring a 50 percent equity stake in Volvo Financial Services India as part of the transaction. The partnership builds upon the long-standing relationship between Eicher Motors and Volvo Group through VE Commercial Vehicles, their successful commercial vehicle joint venture that has operated in India for nearly two decades.
Siddhartha Lal, Chairman of Eicher Motors Limited, said the new venture represents a strategic expansion of the partnership with Volvo Group into the vehicle financing segment. He noted that the collaboration combines Volvo’s global expertise in financial services with Eicher’s strong domestic market presence, customer network and product portfolio. According to Lal, the joint venture will support customers of Eicher, Volvo and Royal Enfield by providing easier access to financing solutions and enhancing the overall ownership experience.
Volvo Financial Services serves as Volvo Group’s captive finance provider globally and currently operates in nearly 40 international markets. As of the end of calendar year 2025, the business managed assets under management of approximately USD 27.4 billion worldwide. In India, Volvo Financial Services has been operational for over a decade and reported assets under management of Rs 1,825 crore as of March 31, 2026.
The proposed joint venture is expected to combine Volvo Financial Services’ expertise in structured financing and leasing with Eicher’s deep understanding of Indian mobility markets and extensive distribution network. The companies believe this integrated approach will strengthen customer access to financing while enabling faster decision-making and improved service efficiency.
Completion of the transaction remains subject to regulatory approvals and other customary conditions. Upon closing, fresh equity shares of the proposed joint venture entity will be issued to Eicher Motors, with the final investment amount to be determined in accordance with transaction agreements.
Eicher Motors is the parent company of Royal Enfield, one of the world’s leading middleweight motorcycle brands operating in more than 80 countries. The company also maintains a major presence in India’s commercial vehicle segment through VE Commercial Vehicles, which manufactures Eicher-branded trucks and buses, Volvo trucks and engines for domestic and global markets.
