Indian commercial vehicle manufacturer, Eicher Motors Limited and US leisure vehicle producer Polaris signed up in a joint venture. Tying up with Eicher, Polaris plans to enlarge its business across India. By this venture both will have 50:50 stake in the consortium. The Eicher Motors has 400 outlets across the country. At the first phase, the consortium plans to invest an initial amount of Rs.250 crore for the first three year period.
"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. The joint venture company will design, develop, manufacture and sell a full new range of personal vehicles suitable for India and other emerging markets.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. At Eicher Motors, we are committed to exploring and pursuing opportunities for long-term profitable growth, and value creation for our stakeholders. This JV with Polaris is a strategic initiative towards that direction" said Eicher Motors Managing Director and CEO, Mr. Siddhartha Lal.
Eicher Group is known for its commercial vehicles which are sold in more than 40 countries in the world. Being headquartered at Pithampur, in Madhya Pradesh, Eicher has already sealed its presence in all categories wherever it's in.
"This agreement reinforces Polaris' position as a global leader, instantly expanding our presence in India and our access to additional emerging markets around the globe" said Polaris Industries Chief Executive Officer, Mr. Scott W. Wine.
Polaris Industries is an American manufacturer of snowmobiles, ATV, and neighborhood electric vehicles. Polaris' wholly subsidiary, Victory Motorcycles is one of the best premium selling motorcycle brands in the world.
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