Eicher Motors inks JV with Polaris Industries

September 10, 2012 11:31 am

Eicher Motors has signed a strategic joint venture agreement with US based Polaris Industries for setting up a greenfield project in the automotive sector. This agreement envisages the creation of a joint venture company with a 50:50 partnership between the two companies.
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 manufacturing facility will be located in India and the joint venture partners are currently evaluating locations to set up the facility. The expected start of production is 2015. Under the collaboration, the joint venture company will be governed by a board with equal representation from both the companies. The overall investment in the joint venture company over a three year period will be approximately Rs 250 crore.
Commenting on the joint venture, Siddhartha Lal, Managing Director & CEO, Eicher Motors said, “Currently, we are present in the commercial vehicle and motorcycle categories. The collaboration with Polaris Industries Inc. will allow us to enter into a new vehicle segment.”
“The joint venture company brings together Eicher’s proven expertise in frugal engineering, lean business model and in-depth understanding of emerging markets with the excellent product development capabilities and world class reliability of Polaris. This will ensure that the products from the joint venture company, when launched, will set new benchmarks in optimal customer value,” he added.
Scott W Wine, CEO, Polaris Industries Inc. said, “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.”
“This joint venture provides both companies incredible opportunities to develop new products and realise global growth”, he further added.