New Delhi (PTI): Commercial vehicle maker Eicher Motors Ltd on Friday said it has finalised joint venture deal with Swedish truckmaker A B Volvo for making trucks and buses.

Eicher Motors (EML), which has transferred its commercial vehicle business to the new JV company V E Commercial Vehicles Ltd, said the operations of the new JV company would be considered effective from July 1 this year.

"EML has transferred its commercial vehicles business along with its related components and engineering design services businesses to its joint venture company with Volvo, V E Commercial Vehicles Ltd (VECV)," EML said in a statement.

In addition to the businesses being transferred from EML, the JV will also contain Volvo Group's Indian truck sales operations and the truck and bus service operations, the company added.

The JV would be a subsidiary of EML, where Eicher would hold 54.4 per cent equity and Volvo 45.6 per cent.

The JV has an equity value of 768 million dollars. While EML is making an equity contribution of 418 million dollars, Volvo would be investing 350 million dollars into it.

Earlier in May, the two companies had formalised the JV, which would manufacture and market independent Eicher and Volvo branded trucks with the former focusing on 5-50 tons trucks and the latter on heavy duty trucks.

Eicher brand commercial vehicles will continue to roll out from the Pitampur plant, which had a capacity of about 4,000 units per month, while Volvo will also continue to manufacture trucks at its facility in Bangalore.