Key Highlights
- Eicher Motors plans to enter the financial services segment through a 50:50 joint venture with Volvo Group.
- The Eicher Motors board approved an investment of up to ₹750 crore for a 50% equity stake.
- The proposed venture will provide financing leasing and other financial services in India.
- The transaction is subject to Reserve Bank of India approval and is expected to close by December 2026.
Eicher Motors Limited (EML) has announced plans to enter the financial services sector in India through a proposed 50:50 joint venture with Volvo Group. The company’s board has approved an investment of up to ₹750 crore to acquire a 50% equity stake in Volvo Financial Services India as part of the transaction.
The proposed joint venture aims to provide financing leasing and other financial services solutions across the Indian market. According to the company disclosure the venture will operate as a captive financing arm serving customers of Volvo Group entities VE Commercial Vehicles and Eicher Motors businesses.
The move marks an expansion of the long-standing relationship between Eicher Motors and Volvo Group. The two companies have been partners for nearly 18 years through VE Commercial Vehicles (VECV) which operates in the commercial vehicle segment in India.
Eicher Motors stated that the partnership combines Volvo’s global financial services expertise with Eicher’s domestic market knowledge and distribution network. The venture is expected to strengthen customer financing access while supporting vehicle sales and broader financial offerings.
Volvo Financial Services India currently operates as a middle-layer non-deposit taking non-banking financial company registered with the Reserve Bank of India. As of March 31 2026 the company reported assets under management of ₹1,825 crore and net worth of ₹492 crore. Its turnover for FY26 stood at ₹174.98 crore according to the filing.
Under the proposed structure Eicher Motors will subscribe to fresh equity shares in the joint venture entity through a cash investment. Following completion Eicher Motors will hold a 50% stake while both partners will share control of the business with equal representation on the board and board committees.
The agreement also outlines a joint governance framework. Volvo will have the right to nominate key executive roles including the Chief Executive Officer Chief Financial Officer and Chief Risk Officer while Eicher Motors will nominate the Managing Director and Deputy Chief Financial Officer.
The transaction remains subject to approval from the Reserve Bank of India and other conditions specified in the transaction documents. Eicher Motors expects the deal to be completed by December 2026.