Eicher to enter personal vehicle segment; forms JV with Polaris
The JV is currently exploring a location in India to set up the plant to roll out "personal vehicles" by 2015 for the domestic as well as overseas markets.
"Currently, we are present in the commercial vehicle and motorcycle categories. The collaboration with Polaris Industries will allow us to enter into a new vehicle segment," Eicher Motors Managing Director and CEO Siddhartha Lal said in a statement. As per of a definitive agreement, both the firms have formed a 50:50 joint venture to set up a greenfield project in the automotive sector.
"The joint venture company will design, develop, manufacture and sell a full new range of personal vehicles suitable for India and other emerging markets," Eicher Motors said without sharing other details.The manufacturing facility will be located in India and the JV partners are currently evaluating locations to set up the plant, which is expected to start production in 2015, it added.
"The overall investment in the joint venture company over a three year period will be approximately Rs 250 crore. The projected financial outcomes from this venture meet the long term financial expectations of both the companies," the statement said.