Polaris Enters Joint Venture with Eicher Motors Limited
July 25, 2012
Filed under Latest News
Polaris Industries Inc. today announced a joint venture with Eicher Motors Limited, a leading manufacturer of commercial vehicles and motorcycles in India, including the iconic motorcycle brand Royal Enfield.
The joint venture will develop and market new products to meet the diverse vehicle needs in India and other emerging markets. The agreement creates a new operation, wherein Polaris and Eicher each control 50 percent. The overall investment is expected to be approximately $50 million, shared equally between the partners over a three-year period.
Eicher is a well-established, powerful brand in India. The company today comprises Royal Enfield 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. Between its two business divisions, Eicher has a dealer network with more than 400 locations in India.
While strategies are still under discussion, Eicher and Polaris plan to cooperatively build a new manufacturing facility to support this joint venture, with production projected to start in 2015.