Mumbai: Eicher Motors has signed a strategic joint venture agreement with US based powersports major, Polaris Industries, to set up a greenfield project in the automotive sector.
The definitive agreement, signed between Siddhartha Lal, MD & CEO, Eicher Motors and Scott W Wine, CEO, Polaris Industries envisages the creation of a 50:50 joint venture company.
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, with production expected to start in 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 crores.
"The joint venture company brings together Eicher's expertise in frugal engineering, lean business model and in-depth understanding of emerging markets with product development capabilities," said Siddhartha Lal, Managing Director & CEO, Eicher Motors.
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, Lal 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." said Scott W Wine, CEO, Polaris Industries.
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