Polaris Partners with India’s Eicher Motors
Motorcycle Industry News
Polaris Industries Inc., owner of Victory Motorcycles and Indian Motorcycle, has joined forces with the India-based Eicher Motors Limited.
Under this joint venture, Polaris and Eicher Motors Limited, a leading manufacturer of commercial vehicles and motorcycles in India, will develop and market new products to meet the diverse vehicle needs in India and other emerging markets.
The agreement creates a new operation, wherein Polaris and Eicher each control 50 percent. The overall investment is expected to be approximately $50 million, shared equally between the partners over a three-year period.
Scott Wine (Polaris CEO) says: “This agreement instantly expands and enhances Polaris’ presence in India and supplying access to additional emerging markets around the globe and leverages Polaris’ strength in product innovation and vehicle development.
“Eicher’s financial strength and rich history as a leader in the Indian market makes them the perfect partner for Polaris in India. This joint venture represents an incredible opportunity to develop new vehicles and realize global growth.”
Eicher is a well-established, powerful brand in India. The company today is comprised of Royal Enfield, an iconic motorcycle brand, and VE Commercial Vehicles Limited (VECV), a 50/50 venture with Volvo. VECV, established in 2008, manufactures and markets medium-to-heavy-duty trucks and buses, engineering components and provides engineering design solutions. Between its two business divisions, Eicher has a dealer network with more than 400 locations in India.
Sisshartha Lal (Managing Director & CEO, Eicher Motors Limited) says: “At Eicher Motors Limited, we are committed to long term growth and value creation for our stakeholders through both organic and inorganic expansion.
“This joint venture strongly supports our strategic direction. Currently, we are active in the commercial vehicle and motorcycle categories. Collaborating with Polaris allows us to enter new profitable vehicle segments.”
The joint venture will benefit from the complementary and shared strengths each partner provides, utilizing these collective talents to co-develop new products for emerging markets. Polaris’ unmatched innovation in engineering and design, paired with Eicher’s powertrain expertise, economical engineering and knowledge of local markets create a powerful combination. The companies’ shared dedication to manufacturing excellence and responsible management further strengthens this partnership.
While strategies are still under discussion, Eicher and Polaris plan to cooperatively build a new manufacturing facility to support this joint venture, with production projected to start in 2015.