Eicher Motors Unit to purchase Volvo India bus business
Eicher Motors on Thursday said that it has signed definitive agreements for the integration of Volvo Buses India business into VE commercial vehicles (VECV), an Eicher Motors’ arm that covers Eicher's commercial vehicles, components, and engineering design businesses as well as the sales and distribution of Volvo trucks.
According to the agreement, the integration would cover the manufacture, assembly, distribution, and sale of Volvo Buses in India and other rights, forming part of the business. The agreement would further entail the bus manufacturing facility at Hoskote, Bengaluru, and all employees of Volvo Bus India (VBI) to be transferred to VECV. Volvo Bus India is currently a division of Volvo Group India Private Limited
This would thus enable VECV to leverage synergies in the areas of product development, purchasing, and manufacturing.
The division will offer Volvo and Eicher branded buses and will maximise synergies to capitalise on market opportunities. This strategy will be extended to exports, wherein the new bus division will offer products and services that are complementary with Volvo Buses’ core product portfolio in the select international markets.
Speaking on the announcement, Siddhartha Lal, Chairman at VECV stated that with the integration of Volvo Buses India into VECV, the company aims to shape the future of the Indian bus industry by offering the widest range of transport solutions to its customers.
On Thursday, the stock of Eicher Motors closed at Rs 21,671 per share, lower by 1.96 per cent or Rs 433.05 per share on BSE, against a 0.15 per cent decrease in the benchmark index. The 52-week high is recorded at Rs 23,427.75 and the 52-week low is Rs 12,460 on BSE.