Volvo Buses India integrates with VECV
Siddhartha Lal, Chairman, VECV, said, “This is a momentous occasion and testimony to a strong relationship between Eicher Motors and Volvo Group. Over a period of time, the Volvo brand for buses in India has become synonymous with safety and comfort in both inter-city and intra-city public transportation, and we are proud to have it in our joint venture. With the integration of Volvo Buses India into VECV, we aim to shape up the future of the Indian bus industry by offering a range of transport solutions to our customers."
Post the completion of the transaction, VECV and VBI will consolidate their bus businesses into a newly formed bus division within VECV. This division will offer Volvo and Eicher branded buses and will maximize synergies to capitalize on market opportunities. This strategy will be extended to exports, wherein the new bus division will offer products and services that are complementary with Volvo Buses’ core product portfolio in select international markets.
Håkan Agnevall, President of Volvo Bus Corporation, said, “We are pleased with this development of Volvo Buses in India and see it as an opportunity to further build upon the successful JV Company – VECV.”
Vinod Aggarwal, VEVC MD and CEO informed that VECV’s strong presence in the Indian bus market with Eicher branded buses will be complemented by Volvo Buses’ prominent position in the premium bus segment. With this integration, VECV will be able to leverage synergies in the areas of product development, purchasing and manufacturing with access to Volvo Group’s world-class technology in buses.
Akash Passey, Senior VP, Volvo Bus Corporation added that the new division will also engage further in the dynamic Indian market driven by megatrends such as urbanization, e-mobility and connectivity. He will join as President of the new VECV Bus Division. He will repatriate to India for this role and report to Vinod Aggarwal, MD & CEO VECV.
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.
Published on:
14 August 2020
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