MEDINA, Minn. - Polaris Industries has formed a joint venture with Royal Enfield parent company Eicher Motors Ltd. to develop and market new products in India and other emerging markets.
Polaris and Eicher will each control 50 percent of the resulting new operation. The overall investment is expected to be about $50 million, shared equally between the partners over a three-year period, according to Polaris.
"This agreement instantly expands and enhances Polaris' presence in India and supplies access to additional emerging markets around the globe and leverages Polaris' strength in product innovation and vehicle development," said Polaris CEO Scott Wine. "This joint venture represents an incredible opportunity to develop new vehicles and realize global growth."
The Eicher brand includes Royal Enfield 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.
Said Siddhartha Lal, managing director and CEO: "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 blend Polaris' engineering and design strengths with with Eicher's powertrain expertise, economical engineering and knowledge of local market, the announcement stated.
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, according to the announcement.
Posted by Holly Wagner