Staff Writer
Gurgaon: Eicher Motors Limited (EML) and Volvo Group on Thursday announced an intent for a new 50:50 Joint Venture for financing, leasing and other financial services business. An investment of up to Rs. 750 Crores has been approved by the Board of EML to subscribe to a 50% equity stake in Volvo Financial Services (VFS) India.
EML maintains a long-standing and successful partnership with Volvo Group through their joint venture, Volvo Eicher Commercial Vehicles Ltd (VECV). The proposed JV will be the captive financing arm for VECV, EML, and Volvo Group products in India.
Siddhartha Lal, Chairman, Eicher Motors Ltd., 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 (VFS) is the Volvo Group’s captive finance provider, offering tailored financial solutions to Volvo’s customers and dealers around the world. VFS combines global strength with local expertise to provide flexible financing services to Volvo Group customers in about 40 markets, with assets under management (AUM) of around USD 27.4 billion as of end of calendar year 2025.
VFS India has been successfully operational for over a decade, with assets under management (AUM) of Rs 1,825 crores as of March 31, 2026. The JV will combine VFS’ strength and understanding in the financial services with Eicher’s
expansive product portfolio, network and deep market understanding to capture new business in a more aligned and efficient manner. The proposed JV will also deepen integration to accelerate decision-making and help customers in easily accessing financing solutions.
Upon closing of the transaction, contingent upon regulatory approvals, fresh equity shares of the Proposed JV Entity will be issued to EML. The exact investment will be determined at the time of closing, as per the transaction documents.
