Bangalore, May 16:

The proposed joint venture between AB Volvo and Eicher Motors might turn out to be a much closer alliance than its current stated purpose of only having a truck distribution and after-sales network.

The proposal, according to sources close to the development, could encompass much more than the distribution network itself as the total investment by AB Volvo into the venture is $350 million, which includes Volvo’s Indian truck service and dealer network valued at $75 million.

Both the companies are expected to sign a definitive agreement for this purpose towards the end of the month, sources said. In the proposed joint venture, AB Volvo will hold 45.6 per cent stake while Eicher Motors will have the rest.

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