Volvo Sells $300 Million Stake in India’s Eicher Motors
Volvo Group sold 1.27 million shares in Indian auto and truck manufacturer Eicher Motors Ltd. for about $300 million.
The divestment has no effect on ownership or the development of the companies’ long-standing joint venture, VE Commercial Vehicles, Volvo said March 4.
VECV has been owned by Eicher and Volvo Group since 2008 and is the third-largest manufacturer of commercial vehicles in the Indian market, Volvo said.
Prior to the sale, Volvo owned about 8.4% of Eicher’s stock. After the sale, it holds about 3.7%, Reuters reported.
“India is a key market, and the Volvo Group will continue to focus on developing and strengthening VECV as part of [its] strategy to expand in Asia and in other emerging markets,” Volvo said.
Volvo Group, which makes Volvo and Mack brand trucks in North America, said the sale will generate a first-quarter capital gain of about $290 million for its truck segment.
