Eicher Motors Limited, a leading player in the Indian automobile industry has signed a strategic joint venture agreement with US based Polaris Industries Inc, a recognised leader in the powersports industry, to set up a greenfield project in the automotive sector. The definitive agreement was signed between Mr Siddhartha Lal, MD & CEO, Eicher Motors Ltd and Mr Scott W Wine, CEO, Polaris Industries Inc. This agreement envisages the creation of a joint venture company with a 50-50 partnership between the two companies.

The joint venture company will design, develop, manufacture and sell a full new range of personal vehicles suitable for India and other emerging markets. The manufacturing facility will be located in India and the joint venture partners are currently evaluating locations to set up the facility. The expected start of production is 2015.

Under the collaboration, the joint venture company will be governed by a board with equal representation from both the companies.

The overall investment in the joint venture company over a three year period will be approximately INR 250 crores. The projected financial outcomes from this venture meet the long term financial expectations of both the companies.

Commenting on the joint venture, Mr Siddhartha Lal, Managing Director & CEO, Eicher Motors Limited said, "At Eicher Motors Ltd., we are committed to exploring and pursuing opportunities for long term profitable growth and value creation for our stakeholders. This joint venture with Polaris is a strategic initiative towards that direction. Currently, we are present in the commercial vehicle and motorcycle categories. The collaboration with Polaris Industries Inc will allow us to enter into a new vehicle segment."

"We see a strong alignment of values and vision between Eicher Motors Ltd and Polaris Industries Inc. along with a capability set that complements each other very well. The joint venture company brings together Eicher's proven expertise in frugal engineering, lean business model and in-depth understanding of emerging markets with the excellent product development capabilities and world class reliability of Polaris. This will ensure that the products from the joint venture company, when launched, will set new benchmarks in optimal customer value," he further added.

Speaking at the signing ceremony, Mr Scott W Wine, CEO, Polaris Industries Inc. said, "This agreement reinforces Polaris' position as a global leader, instantly expanding our presence in India and our access to additional emerging markets around the globe."

"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 provides both companies incredible opportunities to develop new products and realize global growth," he further added.