New Delhi, 8th March, 2010: Magma Fincorp Limited, a leading asset finance company today signed an agreement with VE Commercial Vehicles (VECV) - a 50-50 joint venture between the Volvo Group and Eicher Motors. This tie-up between the two is for the financing of Eicher-branded trucks and buses. The official agreement was signed by Mr. Sanjay Chamria, Vice Chairman & MD of Magma Fincorp and Mr Siddhartha Lal, MD & CEO, VE Commercial Vehicles Limited at a function held in the city.

Commenting on the occasion, Mr. Sanjay Chamria, Vice Chairman & Managing Director, Magma Fincorp Limited said, "Magma is committed to serve its wide base of customers and offer customized solutions in asset financing in India. The tie up with VECV is in sync with our growth trajectory and we are looking forward to a successful partnership. We will finance VECV's world-class medium and heavy-duty Eicher range of commercial vehicles through our network of 153 offices pan India."

Magma Fincorp has a strong infrastructure in semi urban and rural India. Magma offers finance for new and used Commercial Vehicle, Passenger Cars and Utility Vehicles, Construction Equipment, Tractors etc. The company also provides SME Finance apart from Insurance facilities, thereby providing single window facility to the customers.

Mr. Siddhartha Lal, Managing Director & CEO, VE Commercial Vehicles, said, "VECV has recently launched its new range of Eicher heavy-duty trucks - the 'VE series', and is gearing up to achieve its wanted position of a 15% share of the Indian heavy-duty truck market by 2015, while growing its light and medium-duty market share to beyond 30%. We now have a very strong line-up of trucks and buses supported by a dense sales, service and spare-parts network across India. This tie-up with Magma will be extremely beneficial for us as we would be able to extend our reach across India's semi-urban and rural areas to create a distinct demand advantage for the Eicher range and such market penetration will visibly enhance our market share."

About Magma Fincorp Limited

Magma Fincorp Limited ("Magma") is a non-deposit taking non-banking finance company (NBFC), registered with the Reserve Bank of India (RBI) as an Asset Finance Company. The Company, having started operations over two decades back, is listed on the Bombay Stock Exchange Limited and the National Stock Exchange in India.

Magma provides a bouquet of financial products including financing of Utility Vehicles & Cars, Commercial Vehicles, Construction Equipments, Tractors and SME Loans. Magma has a dedicated base of over 2.5 lac customers and has assets of approximately INR 9390 crores under management. The company has 153 branches in 20 states and 1 union territory and employs about 4400 people.

Magma has recently signed a joint venture with HDI Gerling, part of Talanx Group, Germany's third largest insurance group to start a general insurance company in India. The new company will be head quartered in Kolkata. The new insurance company since has obtained Reserve Bank of India approval and is currently awaiting the Insurance regulator IRDA approval for commencement of operations.

www.magma.co.in

About 'Eicher Trucks and Buses':
Eicher Trucks and Buses is a business area of VECV and it deals with the manufacturing, marketing and sales of Eicher-branded commercial vehicles. Eicher Trucks and Buses has a strong presence in the L/MD segment with around 37% share in 7-12T category and 28% in 5-12T trucks segment. Eicher L/MD trucks have a proven superior performance especially with respect to fuel-efficiency and are often tagged as "Mileage Ke Badshahs".

Similarly Eicher's 21-69 seater buses have a growing presence in the LD school bus segment as well as staff and route-permit segments. Eicher trucks and Buses has just launched the all-new range of its HD products in the 16T-40T segments - the VE Series. On the export front, Eicher Trucks and Buses are present in as many as 26 countries.

www.eicher.in

About VE Commercial Vehicles Ltd (VECV):
VE Commercial Vehicles Limited (VECV) is a 50-50 joint venture between the Volvo Group and Eicher Motors Limited. In operation since July 2008, the company includes the complete range of Eicher trucks and buses, Eicher's components and engineering design services businesses as well as the sales and distribution business of Volvo trucks within India. VECV aims to become a full-range commercial vehicle company whose products will drive modernization in commercial transportation in India and other emerging world markets.

www.vecv.in

Disclaimer:

All statements included or incorporated by reference in this media release, other than statements or characterizations of historical fact, are forward-looking statements. These forward-looking statements are based on our current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by us. Although VE Commercial Vehicles believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Any forward-looking statement speaks only as of the date on which such statement was made, and VE Commercial Vehicles undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. No assurance can be given that actual results, performance or achievement expressed in, or implied by, forward-looking statements within this disclosure will occur, or if they do, that any benefits may be derived from them.