The Volvo Group has sold 1,270,000 shares in the Indian automotive manufacturer Eicher Motors Limited for approximately SEK 2.5 billion ($300 million).
The divestment of shares has no effect on ownership or the development of the longstanding joint venture, VE Commercial Vehicles.
The share disposal will have no impact on either the ownership or control of the truck and bus manufacturer, VE Commercial Vehicles (VECV) in India, where the Volvo Group will remain as owner.
Since 2008, VECV has been owned by Eicher Motors Limited (EML), and the Volvo Group and is currently the third largest manufacturer of commercial vehicles in the Indian market.
In parallel with its joint venture with the Volvo Group, EML owns Royal Enfield.
As a result of their joint venture, Polaris and Eicher are producing a 600cc diesel four-wheel vehicle aimed at farmers, bakers and small distributors in India.