VE Commercial Vehicles (VECV) will be investing Rs. 400 crore to set up a new greenfield truck manufacturing plant in Bhopal as the equal joint venture between Volvo Group and Eicher Motors completes 10 years of partnership and plans future growth.
The new facility is to go on stream in the next 18 months as the Madhya Pradesh government has allotted land for the new plant and the work for building the plant will start soon.
The new factory will have an initial capacity of 40,000 trucks, taking the company’s total capacity to 130,000 units. Its existing factory at Pithampur, near Indore can produce about 90,000 trucks a year.
With a strong foundation built on mutual trust, the joint venture has grown from strength to strength over the years to put VECV in a good position with a yearly average growth of over 18 per cent in last 10 years with turnover of Rs. 10,200 crore in 2017-18, according to a statement.
“The partnership with Volvo has been extremely fruitful for VECV that is reflected in its strong performance in the last decade. VECV is today a full range player in 4 to 55 tonne gross vehicle weight market. Not only VECV has benefited from this partnership, we have also been able to contribute to the cost-reduction opportunities for the Volvo group through the supply of cost-effective engines from India. As we move into the next decade, we reiterate our strong commitment to this partnership,” said Siddhartha Lal, Managing Director & CEO, Eicher Motors Ltd. VECV has developed technologically advanced Eicher Pro series of trucks & buses by incorporating Volvo Group technology. The company sees huge growth opportunities in the Indian commercial vehicle market — both in trucks and buses.
“It is a proud moment for us as we celebrate an extremely successful partnership with Eicher Motors. Together we have created many industry-leading benchmarks to drive modernization in the last 10 years. India is a home base for Volvo Group, with a presence of over two decades across our various business lines and we reiterate our strong commitment to the future of the country and VE Commercial Vehicles,” said Martin Lundstedt, President and CEO, Volvo Group.
VECV is now an exclusive manufacturing hub for the medium-duty Euro VI engines for the Volvo Group. These engines, manufactured at the manufacturing facility in Pithampur, are being exported to Europe and Asia to take care of the needs of the Volvo Group.
“With the announcement of setting up of a new plant, we have full confidence in the growth potential in the Indian market and with technologically superior products, VECV is in an advantageous position to fully leverage the opportunities in the market,’ said Håkan Karlsson, President Volvo Group Trucks Asia & JVs and Chairman, VECV.
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