Sweden-based Volvo Financial Services (VFS), the captive finance arm of the Volvo Group, and Indian automotive manufacturer Eicher Motors Limited have announced the intent to form a 50-50 joint venture to provide financing, leasing, and other financial services to customers of Volvo and Eicher-branded commercial vehicles across the Indian market.

The Volvo Group announced that the joint venture will be created by VFS India issuing new shares to Eicher in exchange for an equity investment of up to Rs 750 crore, approximately 730 MSEK (€63.4m), with the exact amount to be determined at closing per the transaction documents. The deal is expected to close in the first half of 2027, subject to regulatory approval.

VFS president Marcio Pedroso said VFS has developed a strong portfolio in India by leveraging its global presence and working hand-in-hand with Volvo customers and dealers, adding that the joint venture will allow the firm to strengthen that foundation by combining its global financial expertise with Eicher's deep knowledge of Indian mobility markets and its extensive distribution network.

Siddhartha Lal, managing director of Eicher Motors, said the collaboration combines Volvo's global expertise in financial services with Eicher's strong domestic market presence, customer network, and product portfolio, and that the venture will support customers across Eicher, Volvo, and Royal Enfield by providing easier access to financing solutions.

VFS India currently manages assets under management of Rs 1,825 crore (approximately €158m) as of March 2026. Globally, VFS manages approximately $27.4bn (€25.3bn) in assets across nearly 40 markets.

Read the full announcement on the India financial services joint venture.