Volvo divests 8.4% share in Eicher Motors

Volvo Eicher Commercial Vehicles (VECV) is a joint venture that was created in 2008. As a part of the agreement between AB Volvo and Eicher Motors Limited (EML), Volvo acquired 22.75 lakh shares (8.4%) of EML, along with the 45.6% share in VECV. Volvo has now divested its 8.4% share in EML and the move has no relation with / will have no impact on the VECV joint venture.

VECV will continue to function as it always has and Volvo divested its share in EML because the brand didn’t find the stake strategically important. The VECV JV includes the complete range of Eicher branded trucks and buses, VE powertrains, Eicher’s components and engineering design services businesses, the sales and distribution business of Volvo Trucks as well as aftermarket support to Volvo Buses in India.

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