Volvo – Eicher joint venture to drive in new- gen trucks

-Economic times 15th August 2012

04/07/2023 1

Content

04/07/2023

Plans

VECV Competitors

Benefits

Joint Venture

Why Joint Venture

Conclusion

• VE Commercial Vehicles Limited is a 50:50 joint venture.

• Joint venture came into effect in July 2008.

• EML held 54.4 per cent stake in JV & 45.6 per cent is held by Volvo.

• The total equity value of the JV company amounts to $768 million.

Joint venture

04/07/2023 2

Eicher attempts to enter the heavy duty truck space in

2005-06 did not got a good response from the market

Why Joint Venture

04/07/2023 4

• Helped EML expand its presence overseas and sell commercial vehicles in global markets.

• Gave Volvo access to EML’s vast network of over 150 dealers across the country.

• VECV expands its presences in medium & heavy duty truck

• VECV have a compelling product proposition in medium and heavy duty truck market.

Benefits

04/07/2023 5

VECV will give strong competition to:

• Daimler - Bharat Benz• Tata Motors – Prima & Ultra truck• Ashok Leylands – U truck

VECV Competitors

04/07/2023 6

• VECV is ready to enter the whole new truck range (5 tonne to 49 tonne).

• The new truck would be priced at premium to the existing range.

• VECV have invested 700 crore rupees and is planning to invest more1000 crore rupees.

• VECV target 15% share in Indian heavy duty truck market.

Plans

04/07/2023 7

Conclusion

04/07/2023 8

• To enter global market JV is one of the best way to do so.

• It provides competitive advantages

• Sharing of risks with a venture partner. �

• Access to greater resources, including specialised staff and technology.

04/07/2023 Your Logo

• www.vecv.in• www.indianexpress.com

References

04/07/2023 9

Any Questions

THANK YOU!

Your LogoPresented By:Bhavini Patel - 27