Eicher Motors has announced a significant investment of up to ₹750 crore to acquire a 50% stake in Volvo Financial Services (India) Private Limited. This strategic move aims to form a joint venture with Volvo to provide financial services in India.
The board of directors at Eicher Motors approved this investment during a meeting held on 21st May 2026. The investment will be made as cash consideration towards subscribing to 50% of the equity share capital of Volvo Financial Services India, subject to the approval of the Reserve Bank of India.
Volvo Financial Services India, incorporated in 2015, operates as a Middle Layer Non-Deposit taking Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India. The company is engaged in providing financing, leasing, and other financial services to customers and dealers of AB Volvo and its group entities, as well as VE Commercial Vehicles Ltd in India. As of 31st March 2026, the entity reported a paid-up equity share capital of ₹514.4 crore, a turnover of ₹174.98 crore for the fiscal year 2025-26, and assets under management amounting to ₹1825 crore.
The acquisition is considered a related party transaction for Eicher Motors, as the proposed joint venture entity is a related party of VE Commercial Vehicles Ltd, a subsidiary of Eicher Motors. The transaction, however, is being conducted on an arm’s length basis.
Eicher Motors and AB Volvo have maintained a successful partnership through their joint venture, VE Commercial Vehicles Limited, for nearly 18 years. The proposed joint venture with Volvo Financial Services India will serve as a captive financing arm, catering to the financial needs of AB Volvo’s customers, its group entities, VE Commercial Vehicles Ltd, and Eicher Motors within the country.
The board meeting, which commenced at 3:45 p.m., concluded at 4:50 p.m.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).