Eicher Motors is entering the financial services business through a new 50:50 joint venture with Volvo Group, expanding their long-standing partnership beyond commercial vehicle manufacturing into financing and leasing solutions.
The proposed joint venture will focus on vehicle financing, leasing and related financial services for products sold by Volvo Group, Eicher Motors and Royal Enfield in India.
As part of the transaction, Eicher Motors Ltd (EML) board has approved an investment of up to ₹750 crore to acquire a 50% equity stake in Volvo Financial Services (VFS) India.
Expanding an 18-year partnership
Eicher Motors and Volvo Group already operate through their commercial vehicle joint venture,
Volvo Eicher Commercial Vehicles (VECV), which has been active for nearly two decades.
The new financial services JV is expected to function as the captive financing arm for VECV, Eicher Motors and Volvo Group products in India, helping deepen integration across the automotive value chain.
Expansion of long-standing collaboration
Eicher Motors Chairman Siddhartha Lal said the new venture marks an expansion of the long-standing collaboration between the two companies.
“Expanding our highly successful 18-year partnership with Volvo Group, Eicher is now entering the vehicle financing business in India through a new joint-venture. This JV combines Volvo’s global financial services expertise and Eicher’s local knowledge and network,” said Siddhartha Lal.
He added that the joint venture will serve customers of Eicher, Volvo and Royal Enfield while enabling Eicher Motors to strengthen its presence in an important segment of the automotive value chain.
Strategic play beyond manufacturing
The move reflects a growing trend among automobile manufacturers to strengthen captive financing operations as competition intensifies in the automotive market.
By entering the financing business directly, Eicher Motors could improve customer accessibility to credit while enhancing the overall ownership experience.
Volvo Financial Services brings global expertise
Volvo Financial Services is the captive finance arm of Volvo Group and currently operates across nearly 40 global markets.
The company had assets under management (AUM) of around $27.4 billion at the end of calendar year 2025.
In India, VFS has been operational for over a decade and reported assets under management of ₹1,825 crore as of March 31, 2026.
According to the companies, the JV will combine Volvo Financial Services’ expertise in structured financing with Eicher Motors’ product portfolio, dealer network and understanding of the Indian market.
Faster financing access for customers
The proposed structure is also expected to improve alignment between vehicle sales and financing operations, enabling faster decision-making and easier access to financing solutions for customers.
The transaction remains subject to regulatory approvals. Upon completion, fresh equity shares of the joint venture entity will be issued to Eicher Motors, with the final investment amount to be determined at closing in line with transaction agreements.