Shardul Amarchand Mangaldas advises Eicher Motors on joint venture with Volvo Group for financial services business in India

June 1, 2026

Shardul Amarchand Mangaldas & Co. (SAM) acted as legal counsel to Eicher Motors Limited (“EML”) in relation to its proposed joint venture (JV) with the Volvo Group {acting through its group entities: Volvo Business Services International AB (“VBS”) and Volvo Financial Services Aktiebolag (“VFS AB”)} for undertaking vehicle financing and other financial services in India through Volvo Financial Services (India) Private Limited (“Company”), a non-banking financial company registered with the Reserve Bank of India (“RBI”).

The transaction is structured as a 50:50 JV between EML and the Volvo Group, pursuant to a Share Subscription Agreement and Joint Venture Agreement executed on May 21, 2026. Upon closing, EML will subscribe to 50% of the equity share capital of the Company for an investment of up to INR 750 crore, subject to receipt of RBI approval and satisfaction of other conditions agreed in the transaction documents. The exact amount of investment along with issue price per share will be determined at the time of closing as per the transaction documents.

The JV will operate as a captive financing platform for customers of AB Volvo and its group entities, VE Commercial Vehicles Limited (an existing JV between EML and the Volvo Group), and EML within the Indian market. The transaction marks a strategic expansion of EML’s longstanding partnership with the Volvo Group and reflects EML’s proposed entry into the vehicle financing segment in India.

SAM’s transaction team was comprised of Sadia Khan, Partner, Sargam Marwaha, Principal Associate; Shaurya Jakher, Senior Associate; Talin Bhardwaj, Associate; and Anubhav Anand, Manager (Compliance).

The due diligence team comprised Sargam Marwaha, Principal Associate; Shaurya Jakher, Senior Associate; Talin Bhardwaj, Associate; Anubhav Anand, Manager (Compliance); Shashwat Toshkhani, Associate; and Barkha Singh, Associate.