Volvo Eicher Commercial Vehicles (VECV) has announced that the company has signed the final terms of agreement with Volvo Bus India (VBI) to integrate the two businesses togather and will cover the manufacture, assembly, distribution, and sale of the Volvo Buses in India, and other rights forming part of the business.
Currently, Volvo Bus India is a division of Volvo Group India Private Limited (VGIPL) and consequently, the bus manufacturing facility at Hosakote, Bengaluru, and all employees of Volvo Bus India (VBI) will be transferred to VECV. With the integration, VECV aims to offer the widest range of transport solutions to its customers with the Volvo brand which is synonymous with safety and comfort in both inter-city and intra-city public transportation.
According to the brand, Definitive Agreements have been signed and the transaction will be completed once the conditions under the agreements are fulfilled and the final business transfer is expected to be closed within the next two months. The brand has also announced that after the transaction is concluded VECV and VBI will incorporate their bus businesses into a newly formed bus division within VECV.
The new Bus Division, within VECV, to not only offer Volvo and Eicher branded buses but also offer products and services that are complementary with Volvo Buses’ core product portfolio in select international markets with a strategy that also extends toward exports, maximising synergies to capitalize on market opportunities in India and abroad.
The brand has also confirmed that Akash Passey, Senior Vice President, Volvo Bus Corporation will join as President of the newly formed VECV Bus Division and for this role report to Vinod Aggarwal the MD & CEO of VECV.
A couple of months ago, Eicher Truck and Buses has launched the heavy-duty Eicher Skyline Pro 6016 with a with Volvo’s 5.1L VEDX5 engine which became the first Eicher HD Bus implementing the Scandinavian brand’s powertrain under the VE Commercial Vehicles Limited (VECV), a joint venture between the Volvo Group and Eicher Motors Limited.
