Polaris announces joint venture in India
Polaris has announced a joint venture with Eicher Motors Limited, a publicly owned $1.3 billion (U.S.) manufacturer of commercial vehicles in India.
Siddhartha Lal, Eicher managing director and CEO, left, and Polaris CEO Scott Wine, right
The agreement creates a new operation in which Polaris and Eicher will each control 50 percent.
The joint venture will be headquartered in India and manufacture products for India and other emerging markets.
The overall investment is expected to be approximately $50 million, shared equally between the partners over a three year period. Eicher has a rich history as a powerful brand in India dating back more than 50 years. Today, the company comprises Royal Enfield, the iconic motorcycle brand and VE Commercial Vehicles Limited (VECV), a 50/50 venture with Volvo. VECV, established in 2008, manufactures and markets medium-to-heavy-duty trucks and buses, engineering components and provides engineering design solutions.
Eicher has a dealer network with more than 400 locations in India and the joint venture instantly enhances the Polaris presence in what is the world’s second-most populous country and the second-fastest growing economy in the world. India’s middle class is growing and incomes among this segment are expected to rise dramatically in the future. Vehicle purchases in India – both on and off-road – are projected to continue rising as a middle class with diverse needs expands.
This new operation generates opportunities for the company to utilize the complementary and shared strengths of Polaris and Eicher to co-develop new vehicles for emerging markets, including India.
Polaris innovation in engineering and design, paired with Eicher’s powertrain expertise, economical engineering and knowledge of local markets, creates a powerful combination. Eicher’s financial strength and rich history in India provides a credible, in-market partner for Polaris and dramatically increase the company’s presence, including plans to build a new manufacturing facility to support the joint venture.
For further information contact Polaris Britain: 0800 915 6720 or visit www.polaris-britain.com