News

Volvo is to acquire 8.1% of Indian truck manufacturer Eicher Motors and will form a $350m (£170m) joint venture with a view to exploiting what is now the world's fourth largest truck market. This  ends months of speculation, with Volvo and Daimler courting Eicher. Daimler had been regarded as the preferred bidder but Volvo has paid what many analysts regard as an inflated price, leaving Daimler - also keen to leverage itself into the mass Indian truck market - likely to announce a deal with the Hero Group before the end of the year.

Earlier this year Volvo had lengthy talks with Ashok Leyland with a view to acquiring the 15% stake in India's second largest truck manufacturer ceded by Iveco. These talks failed as a result of Ashok Leyland's reluctance to give up management control. Instead "it will be a jointly managed company", says Eicher chief financial officer Vinod Aggarwal. "There will be shared control between Volvo  and Eicher Motors - both partners will have joint rights on the appointment of management."