Volvo Group has now finalised the deal with Eicher Motors for the establishment of a new Indian joint-venture company, VE Commercial Vehicles Limited, that combines both companies' truck and bus operations in the emerging market.

The transaction has been approved by the necessary authorities and 50% of the joint-venture company was consolidated in the Volvo Group from 1 August.

The joint venture will contain all of Eicher Motor's truck and bus operations as well as the Volvo Group's Indian truck sales operations and truck and bus service operations.

As previously announced, Volvo Group paid INR13,200m (GBP166.5m) for its share.