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Eicher Motors Limited (EML) incorporated in 1982, is an
Indian automaker company based in Gurgaon, India and a
leading player of the Indian automobile industry.
The Eicher Group has diversified business interests in design
and development, manufacturing, and local and international
marketing of trucks, buses, motorcycles, automotive gears, and
Eicher has invested in the potential growth areas of
management consultancy services, customized engineering,
and maps and travel guides
The Volvo Group is one of the world’s leading
manufacturers of trucks, buses, construction equipment
and marine and industrial engines
Provides complete solutions for financing and service
Employs about 115,000 people, has production facilities
in 19 countries and sells its products in more than 190
Joint Venture came up in June 2008 - VE COMMERICAL VEHICLES
50:50 Joint Venture
Eicher will transfer its commercial vehicles, components and
engineering design services business to the new joint venture
Volvo will brought advanced manufacturing technology and set up new
processes for improving after sales services
Volvo would invest $350 million of which $275 million as cash
and $75 million as value for its truck dealer and service
network — for a 45.6% stake in the JV, while the rest will be
held by EML.
It included complete range of Eicher-branded trucks and
buses, VE Powertrain, Eicher's components and engineering
design services businesses as well as the sales and
distribution business of Volvo trucks within India.
REASONS FOR JOINT VENTURE
• MASS MARKET PRODUCT
• FRUGAL ENGINEERING
• EXPERIENCE OF WORKING
IN EMERGING MARKET
• GLOBAL DISTRIBUTION
• ADVANCED TECHNOLOGY
• FINANCIAL MUSCLE
Helped EML expand its presence overseas and
sell commercial vehicles in global markets
Gave Volvo access to EML’s vast network of over
150 dealers across the country
VECV expands its presences in medium & heavy
VECV have a compelling product proposition in
medium and heavy duty truck market
VECV invested 700 crore in the business and it has lined up another
1,000 crore for the next few years, which will go into R&D, engine
manufacturing facility, bus body building plant and new paint shop
It has 11% share in the overall truck market with 31% share in the
light duty and medium duty segment of 5-12 tonne.
Launched the Pro Series, a new range of trucks and buses
developed specifically for India and other selected growth markets.
The Pro Series includes 11 new products (trucks and buses) and
covers the entire 5 to 49 ton gross vehicle weight (GVW) range,
setting a new standard among customers with high demands on
profitability, flexibility and driver effectiveness.
VECV target 15% share in Indian heavy duty truck market.
VECV WILL GIVE STRONG COMPETITIONTO:
Volvo has invested more into
the joint venture over time as
compared to Eicher
Volvo may want more control
and a bigger say in decisionmaking and it may not value
Eicher's contribution to the
same extent as before