New Delhi: VE Commercial Vehicles (VECV), the truck and bus making company of Eicher Motors, has signed an agreement to buy the bus division of Volvo in India.
The transaction will be completed once the conditions under the agreements are fulfilled and the final business transfer is expected to be closed within the next two months. VECV is a joint venture between Volvo Truck Corporation and Eicher Motors.
The transaction will lead to a new bus division comprising Eicher and Volvo bus business. The transfer agreement with Volvo Group India is for manufacture, assembly, distribution and sale of the Volvo buses in India.
"With this integration, we aim to shape the future of the Indian bus industry by offering the widest range of transport solutions to our customers," said VECV chairman Siddhartha Lal.
"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 select international markets," he said in a statement on Thursday.
The bus manufacturing facility at Hosakote in Bengaluru and all employees of Volvo Bus India will be transferred to VECV.
"Going forward, customers and partners can expect the same high level of customer care and world-class products from both Volvo and Eicher brands," said Akash Passey, Senior Vice President of Volvo Bus Corporation.
"The new division will also engage further in the dynamic Indian market driven by mega-trends such as urbanisation, e-mobility and connectivity," he added.
Passey will join as President of the newly-formed VECV Bus Division. He will repatriate to India for this role and report to Vinod Aggarwal, Managing Director and CEO of VECV.