In the latest tie-up in the automotive sector between global and Indian groups, Volvo yesterday unveiled an investment worth $350m in a joint venture with Eicher Motors to boost production of heavy trucks in India. At the core of the joint venture is an attack on Tata Motors, which dominates the commercial vehicle sector in the world's fourth-largest market for heavy trucks. More than 220,000 heavy trucks worth $7.5bn were sold in India last year and the market is expected to swell as India develops. Leif Johansson, chief executive of Volvo, said the move was "strategically highly important". The growth of retail, logistics and other new industries in India was fuelling demand for trucks, said Siddhartha Lal, chief executive of Eicher, the country's third-largest truckmaker. Volvo signed a letter of intent to contribute $275m in cash and transfer its $75m truck distribution group to the new entity. The Swedish group will own 45.6 per cent, while Eicher will hold the remainder. Volvo will also take an 8.1 per cent stake in Eicher for a sum that is under discussion.