Volvo – Eicher joint venture to drive in new- gen trucks -Economic times 15th August 2012

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Content Joint Venture Why Joint Venture Benefits VECV Competitors Plans 9/20/2012 Conclusion .

• The total equity value of the JV company amounts to $768 million.6 per cent is held by Volvo. • EML held 54.4 per cent stake in JV & 45. • Joint venture came into effect in July 2008.Joint venture • VE Commercial Vehicles Limited is a 50:50 joint venture. 9/20/2012 2 .

Why Joint Venture Eicher attempts to enter the heavy duty truck space in 2005-06 did not got a good response from the market 9/20/2012 4 .

9/20/2012 5 .Benefits • Helped EML expand its presence overseas and sell commercial vehicles in global markets. • VECV expands its presences in medium & heavy duty truck • VECV have a compelling product proposition in medium and heavy duty truck market. • Gave Volvo access to EML’s vast network of over 150 dealers across the country.

Bharat Benz • Tata Motors – Prima & Ultra truck • Ashok Leylands – U truck 9/20/2012 6 .VECV Competitors VECV will give strong competition to: • Daimler .

Plans • VECV is ready to enter the whole new truck range (5 tonne to 49 tonne). 9/20/2012 7 . • VECV have invested 700 crore rupees and is planning to invest more1000 crore rupees. • The new truck would be priced at premium to the existing range. • VECV target 15% share in Indian heavy duty truck market.

• It provides competitive advantages • Sharing of risks with a venture partner.‡ • Access to greater resources.Conclusion • To enter global market JV is one of the best way to do so. 9/20/2012 9/20/2012 Your Logo 8 . including specialised staff and technology.

vecv.References • www.com 9/20/2012 9 .indianexpress.in • www.

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