VE Commercial Vehicles (VECV), the joint venture between Volvo Group and Eicher Motors, on Wednesday announced an investment of Rs 544 crore (about 576 million Swedish Krona) to set up a greenfield manufacturing facility for Volvo Group’s globally advanced 12-speed Automated Manual Transmission (AMT) systems.
The new factory will come up at the Vikram Udyogpuri Integrated Industrial Township near Ujjain, Madhya Pradesh, and marks another key milestone in the 18-year-old partnership between the two companies.
VECV, which already serves as the global manufacturing hub for Volvo Group’s 5- and 8-litre MDEP engines from its Pithampur plant since 2013, said the new investment reinforces its “Make in India for the World” commitment.
“This investment represents yet another win-win synergy with the Volvo Group and leverages the technical and industrial capabilities that have been built over the past 18 years,” said Sofia Frandberg, Chairperson of VECV and Senior Leader at Volvo Group. She added that the company continues to demonstrate leadership in introducing future-ready solutions to meet evolving customer needs.
Siddhartha Lal, Chairman of Eicher Motors, said the move underscores the trust and technical capability developed through the joint venture since its inception in 2008. “The new investment to assemble and produce the Volvo Group AMT marks another significant step towards our vision of becoming a leading commercial vehicle player in India and other emerging markets,” he said.
Jens Holtinger, Executive Vice President, Group Trucks Technology and Chief Technology Officer of Volvo Group, said the new hub exemplifies how the Group is leveraging global partnerships to strengthen its supply chain. “Over the past 18 years, VECV has become a core part of the Volvo Group supply chain for critical components and aggregates. We now write a new chapter in this successful relationship,” he added.
Highlighting the strategic importance of the project, Vinod Aggarwal, MD and CEO of VECV, said the new AMT technology will give Eicher truck customers access to a proven system that enhances driver comfort and operational efficiency.
“The Volvo Group’s globally leading AMT reduces driver fatigue and improves fuel economy, productivity, and uptime in demanding operations. The new factory will be built to global standards and aligns with the government’s Make in India vision,” he said, thanking the Madhya Pradesh government for its support. |
