Eicher Motors Limited has informed the Exchange about Acquisition - Investment in Volvo Financial Services (India) Private Limited
EICHERMOT · price
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Eicher Motors Limited's Board has approved an investment of up to Rs. 750 Crore to acquire 50% equity stake in Volvo Financial Services (India) Private Limited (VFS India), forming a 50:50 joint venture with AB Volvo group. VFS India is an RBI-registered NBFC currently providing financing services to AB Volvo group entities and VE Commercial Vehicles Ltd (EML's existing JV with Volvo). The target company has assets under management of Rs. 1,825 Crore and turnover of Rs. 175 Crore for FY 2025-26. The new JV will serve as a captive financing arm for customers of EML, VECV, and AB Volvo group in India. The transaction is a related party transaction (on arm's length basis) and is subject to Reserve Bank of India approval, expected to close by December 2026.
This strategic move diversifies Eicher Motors into financial services, leveraging the existing 18-year partnership with Volvo. The Rs. 750 Crore investment represents a significant commitment that could unlock new revenue streams from captive financing of Royal Enfield and commercial vehicle customers.