Volvo Financial Services and Eicher Motors plan India finance JV

Volvo Financial Services and Eicher Motors Limited have announced plans to form a 50-50 joint venture in India to provide financing, leasing and other financial services for customers of Volvo and Eicher-branded commercial vehicles.

Pending regulatory approval, the joint venture will be created through an equity investment by Eicher into VFS India of up to Rs 750 crores (approximately 730 MSEK). The companies said the exact investment amount will be determined at closing in line with the transaction agreements. The deal is expected to complete during the first half of 2027.

The proposed venture aims to combine VFS’ financing expertise and customer focus with Eicher’s commercial vehicle portfolio and extensive dealer network across India, helping customers gain easier access to tailored funding solutions.

“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, positioning us well to create long-term value in the growing Indian market.”

As the captive finance arm of the Volvo Group, VFS provides tailored financing and insurance products to support commercial vehicle customers and dealers globally.

The companies said the new JV will initially focus on financing Volvo and Eicher commercial vehicle products, with the possibility of expanding in future to support customers and dealers of Royal Enfield in India.

The announcement builds on the long-standing relationship between Volvo Group and Eicher, which have jointly operated VE Commercial Vehicles since 2008. Today, VECV manufactures a broad range of trucks and buses for the Indian market.

VFS and Eicher said the new entity will operate independently and incorporate people, resources and assets from both organisations. Existing VFS India office locations, including Gurgaon, Bangalore, Kolkata, Mumbai, Hyderabad and Delhi, are expected to remain unchanged.

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