Volvo sells holding in the listed Indian company Eicher Motors Limited

The Volvo Group has sold 1,270,000 shares in the listed Indian automotive
manufacturer, Eicher Motors Limited, for an amount totaling approximately SEK
2,5 billion. The divestment of shares has no effect on ownership or the
development of the longstanding joint venture, VE Commercial Vehicles. The sale
will have a positive impact on the Volvo Group’s cash flow after net investments
and net financial debt in a corresponding amount in the first quarter of 2015.
The sale will also generate a capital gain of approximately SEK 2,4 billion,
which will impact operating income in the Trucks segment in the first quarter of
2015.
The share disposal will have no impact on either the ownership or control of the
truck and bus manufacturer, VE Commercial Vehicles (VECV) in India, where the
Volvo Group will remain as owner. Since 2008, VECV has been owned by Eicher
Motors Limited (EML) and the Volvo Group and is currently the third largest
manufacturer of commercial vehicles in the Indian market. In recent years, VECV
has made a number of major investments in product development and production,
for example, a new plant for medium duty engines, a new bus plant and a new
paint facility. In early 2014, Pro series a completely new series of Eicher
trucks and buses was introduced adapted for the market in India and other
emerging markets. India is a key market and the Volvo Group will continue to
focus on developing and strengthening VECV as part of the Group’s strategy to
expand in Asia and in other emerging markets.

Eicher Motors Limited is a leading player in the Indian automotive industry and
is active in two areas: commercial vehicles and motorbikes. In parallel with its
joint venture with the Volvo Group, EML owns the renowned Royal Enfield
motorbike brand.

March 4th, 2015

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The Volvo Group is one of the world’s leading manufacturers of trucks, buses,
construction equipment and marine and industrial engines. The Group also
provides complete solutions for financing and service. The Volvo Group, which
employs about 100,000 people, has production facilities in 19 countries and
sells its products in more than 190 markets. In 2014 the Volvo Group’s sales
amounted to about SEK 283 billion (EUR 31 billion). The Volvo Group is a
publicly-held company headquartered in Göteborg, Sweden. Volvo shares are listed
on Nasdaq Stockholm. For more information, please visit www.volvogroup.com or
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