Eicher Motors, the Indian commercial vehicle company that also owns Royal Enfield motorcycle brand and Polaris, the American all terrain vehicle (ATV) manufacturer have entered a joint venture. This joint venture aims at developing personal vehicles in India that can be sold here as well as in other emerging markets.
Eicher Motors MD and CEO Siddartha Lal and Polaris Industries Inc CEO Scott Wine have signed the joint venture agreement. Speaking about the new development, Mr Lal 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."
Mr 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 realize global growth."
Eicher Motors is Chennai based commercial vehicle manufacturer. It not only builds light commercial vehicles but also has a joint venture with Swedish truck maker Volvo. Further, Eicher is the owner of iconic Indian motorcycle brand Royal Enfield.
Polaris on the other hand is a US based firm known world wide for its off-road vehicles, ATVs, snowmobiles and motorcycles. Polaris has set up its Indian operations and is currently selling its ATVs through the CBU route.
Both companies have stated that will jointly invest Rs.250 crores in the new venture in the next three years. The companies are scouting for a suitable location to set up their manufacturing facility. The companies have added that products will roll out from 2015. The companies have not specified the exact vehicles they are going to develop under the Eicher Polaris joint venture. Will it be new Royal Enfield bullets?