Volvo Financial Services and Eicher Motors Limited have announced plans to establish a 50-50 joint venture aimed at providing financing, leasing, and related financial services for Volvo and Eicher commercial vehicle customers in India.
The proposed venture, subject to regulatory approvals, will be created through an equity investment of up to ₹750 crore by Eicher Motors into VFS India. The transaction is expected to be completed during the first half of 2027.
The new entity will focus on offering tailored financial solutions to customers and dealers of Volvo- and Eicher-branded trucks and buses across the Indian market. The partnership is expected to strengthen access to vehicle financing while improving operational efficiency and customer support.
Marcio Pedroso, President of Volvo Financial Services, said the move reflects the company’s intention to deepen its presence in India and expand support for Eicher-branded commercial vehicles.
“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,” Pedroso said.
The collaboration builds on the long-standing relationship between the Volvo Group and Eicher Motors, which jointly formed VE Commercial Vehicles in 2008. Today, VE Commercial Vehicles manufactures and markets a wide range of trucks and buses in India.
According to the companies, the proposed joint venture will combine Volvo Financial Services’ expertise in commercial vehicle financing with Eicher’s extensive dealer and customer network. The partnership aims to accelerate decision-making and simplify access to financing products suited to transport operators’ business requirements.
Initially, the venture will cater to financing needs for Volvo and Eicher commercial vehicles. However, the companies indicated that there may be opportunities in the future to extend financing services to customers and dealers of Royal Enfield, which is owned by Eicher Motors.
The companies also stated that the new organisation will integrate existing employees, resources, and assets from both sides while continuing operations from current VFS India office locations, including Gurgaon, Bengaluru, Kolkata, Mumbai, Hyderabad, and Delhi.
The Volvo Group said the transaction is not expected to have a significant impact on its earnings or cash flow at the time of closing.
