VECV has announced today that they have acquired Volvo Bus India in a deal worth Rs 100 crores
Volvo Buses India is now integrated with VECV. Following the signing of ‘Definitive Agreements’ to integrate Volvo Buses India business into VECV, the latter will will cover manufacturing, assembly, distribution, sale of Volvo Buses in India, and other rights, which are part of the business.
The bus manufacturing facility at Hosakote, Bengaluru, and Volvo Bus India (VBI) employees are transferred to VECV. Volvo Bus India is a division of Volvo Group India Private Limited (VGIPL). The deal is worth Rs 100 crores.
VECV now bigger than before
With this development comes an opportunity to further leverage the success of the VECV JV company. By consolidating operations at Volvo Buses India into VECV, the bus business will be further developed and strengthened for an improved position in the Indian bus market.
The new bus division offers a full range of modern buses catering to heavy, medium and light duty bus requirements. With procedures underway, the transaction is to be concluded as per fulfilment of agreements, and final business transfer is expected to be closed in the next two months.
Akash Passey joins as President of the VECV Bus Division, and will repatriate to India, and report to Vinod Aggarwal, MD & CEO VECV. Equipped with the widest range of public transport solutions under Volvo and Eicher brands, brand focus is fine-tuned to urbanization, e-mobility, connectivity and sustainability.
VECV – Volvo and Eicher buses
VECV enjoys a strong presence in the Indian bus market with Eicher branded buses. This will be further strengthened with Volvo Buses’ presence in the premium bus segment. The integration allows VECV to leverage best practices in regard to product development, purchasing and manufacturing, all backed by Volvo Group’s global tech prowess in the field.
Volvo Bus, a flag bearer of the Volvo Brand in India will be further strengthened with VECV. The business arrangement builds on the high standards of Volvo and Eicher brands.
Siddhartha Lal, Chairman, VECV said, “This is a momentous occasion and testimony to a very strong relationship between Eicher Motors and Volvo Group. Over a period of time, the Volvo brand for buses in India has become synonymous with safety and comfort in both inter-city and intra-city public transportation, and we are extremely proud to have this iconic brand in our joint venture. With the integration of Volvo Buses India into VECV, we aim to shape the future of the Indian bus industry by offering the widest range of transport solutions to our customers.
Post the completion of the transaction, VECV and VBI will consolidate their bus businesses into a newly formed bus division within VECV. This division will offer Volvo and Eicher branded buses, and will maximize synergies to capitalize 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 select international markets.”