Volvo Financial Services (VFS) and Eicher Motors have announced plans to establish a 50-50 joint venture aimed at offering financing, leasing and related financial services for customers of Volvo and Eicher commercial vehicles in the Indian market.
Subject to regulatory approvals, the proposed joint venture will be formed through the issuance of new shares by VFS India to Eicher Motors in exchange for an equity investment of up to Rs 750 crore. The final investment amount will be determined at the time of transaction closure in accordance with the agreed transaction documents.
The proposed venture is expected to strengthen financing accessibility for commercial vehicle customers by combining Volvo Financial Services’ expertise in financial solutions with Eicher’s extensive commercial vehicle portfolio and dealer network across India. The collaboration is also intended to streamline customer access to financing solutions while improving operational efficiency and decision-making capabilities.
“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 Marcio Pedroso, President, VFS. “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.”
As the financial services arm of the Volvo Group, VFS provides customised financial and insurance solutions tailored to commercial vehicle operations. Eicher Motors, meanwhile, continues to maintain a strong presence in the Indian transportation sector through its range of trucks and buses supported by a widespread dealership network.
The partnership further builds on the long-standing collaboration between the Volvo Group and Eicher Motors through VE Commercial Vehicles (VECV), which was established in 2008. VECV currently manufactures a broad portfolio of trucks and buses for the Indian market.
Initially, the proposed joint venture will focus on financing Volvo and Eicher commercial vehicle products, with future plans to potentially extend services to customers and dealers of Royal Enfield.
The new entity is expected to operate independently while integrating existing resources, personnel and assets from both companies. Existing VFS India offices located in Gurgaon, Bangalore, Kolkata, Mumbai, Hyderabad and Delhi are expected to continue operations without changes following the integration.
The transaction is anticipated to close during the first half of 2027, subject to the necessary regulatory approvals.