JSA, SAM Advise Volvo Group On Joint Venture With Eicher Motors Limited
A 50:50 JV has been entered into between EML and the Volvo Group, pursuant to a Share Subscription Agreement and Joint Venture Agreement.
Volvo Group has proposed 50:50 joint venture with Eicher Motors Limited (“EML”) involving an investment of up to INR 750 crores (approximately USD 75 million), pursuant to which EML will be subscribing to 50% of the equity share capital of Volvo Financial Services (India) Private Limited (“VFS India”).
VFS India is a middle layer non-deposit taking non-banking financial company registered with the Reserve Bank of India (“RBI”) and is currently engaged in the business of providing financing, leasing, and other financial services to customers and dealers of Volvo group entities, and VE Commercial Vehicles Limited, in India.
The transaction is structured as a 50:50 JV between EML and the Volvo Group, pursuant to a Share Subscription Agreement and Joint Venture Agreement executed on May 21, 2026. The JV will operate as a captive financing platform for customers of AB Volvo and its group entities, VE Commercial Vehicles Limited (an existing JV between EML and the Volvo Group), and EML within the Indian market. The transaction marks a strategic expansion of EML’s longstanding partnership with the Volvo Group and reflects EML’s proposed entry into the vehicle financing segment in India.
JSA Advocates & Solicitors provided end-to-end assistance to Volvo Group in relation to the proposed joint venture, including structuring the deal, drafting, negotiation and finalization of the letter of intent, definitive transaction documents, including the Share Subscription Agreement and Joint Venture Agreement, advising on RBI regulatory considerations and implementation-related aspects of the proposed joint venture.
The transaction is subject to the receipt of requisite approval from the RBI and satisfactory completion of the conditions precedent and closing actions, pursuant to which, Volvo and EML will each hold 50% shareholding in the proposed joint venture.
The transaction team was led by Upendra Nath Sharma, Partner and Kartik Jain, Partner, with support from Zeni Arora, Principal Associate and Yash Wardhan Tiwari, Senior Associate. The Banking & Finance team comprised Nand Gopal Anand, Partner and Harshit Dusad, Partner. Kumarmanglam Vijay, Partner and Head of Practice, Direct Tax, advised on specific direct tax related queries.
Shardul Amarchand Mangaldas & Co. (SAM) transaction team acted as legal counsel to Eicher Motors Limited and comprised of Sadia Khan, Partner, Sargam Marwaha, Principal Associate; Shaurya Jakher, Senior Associate; Talin Bhardwaj, Associate; and Anubhav Anand, Manager (Compliance).
The due diligence team comprised Sargam Marwaha, Principal Associate; Shaurya Jakher, Senior Associate; Talin Bhardwaj, Associate; Anubhav Anand, Manager (Compliance); Shashwat Toshkhani, Associate; and Barkha Singh, Associate.