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Polaris, Royal Enfield parent company form joint venture

Polaris Industries Inc. on Tuesday announced a joint venture with Eicher Motors Limited, a leading manufacturer of commercial vehicles and motorcycles in India and the parent company of Royal Enfield.
July 26, 2012

Medina, MN - Industry News from Polaris
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Polaris Industries Inc. on Tuesday announced a joint venture with Eicher Motors Limited, a leading manufacturer of commercial vehicles and motorcycles in India and the parent company of Royal Enfield.

The joint venture will develop and market new products to meet the diverse vehicle needs in India and other emerging markets, according to a Polaris news release. 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.

“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,” Polaris CEO Scott Wine said. “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 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 and engineering components and provides engineering design solutions. Between its two business divisions, Eicher has a dealer network with more than 400 locations in India. In 2010, Eicher Motors surpassed $1 billion in revenues.

“At Eicher Motors Limited, we are committed to long term growth and value creation for our stakeholders through both organic and inorganic expansion,” said Siddhartha Lal, managing director and CEO, Eicher Motors Limited. “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 expected to start in 2015.


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