MINNEAPOLIS—Polaris Industries Inc. has struck a joint venture with Eicher Motors Ltd., a manufacturer of commercial vehicles and motorcycles in India.
The joint venture will develop and market new products to meet diverse vehicle needs in India and other emerging markets.
The agreement creates a new operation owned evenly by Polaris and Eicher. 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,” said Scott Wine, Polaris CEO.
Eicher is a well-established brand in India that owns motorcycle brand Royal Enfield and VE Commercial Vehicles Limited (VECV), a 50/50 venture with Volvo.
Established in 2008, VECV manufactures and markets medium and heavy-duty trucks and buses, engineered components and provides engineering design services. Eicher has a dealer network with more than 400 locations in India.
The companies plan to cooperatively build a new manufacturing facility to support this joint venture, with production projected to start in 2015.
Polaris designs, engineers, manufactures and markets off-road vehicles, snowmobiles, motorcycles and on-road electric/hybrid powered vehicles. It posted annual 2011 sales of $2.7 billion.
Eicher Motors Ltd., is the flagship company of the Eicher Group in India with 2010 revenues of more than $1 billion.