Investment of ₹544 Crore to Strengthen ‘Make in India’ Vision and Boost Global Supply Chain
VE Commercial Vehicles (VECV) — a joint venture between Volvo Group and Eicher Motors — has announced plans to produce the Volvo Group’s globally acclaimed 12-speed Automated Manual Transmission (AMT) at a new greenfield facility in Madhya Pradesh. The company will invest ₹544 crore (approximately 576 million Swedish Krona) in this state-of-the-art manufacturing plant at the Vikram Udyogpuri Integrated Industrial Township near Ujjain.
The new AMT unit will cater to Eicher’s heavy-duty truck range in India, as well as Volvo Group’s requirements across India and select Asia-Oceania markets. This move marks another major milestone in the successful 18-year collaboration between Volvo Group and Eicher Motors, further strengthening India’s position as a global manufacturing hub for advanced automotive technologies.
Speaking on the announcement, Sofia Frandberg, Chairperson, VE Commercial Vehicles and Senior Leader, Volvo Group, said,
“This investment represents another strong synergy with the Volvo Group, leveraging VECV’s proven technical and industrial capabilities built over nearly two decades.”
Siddhartha Lal, Chairman, Eicher Motors Limited, added,
“Our partnership with Volvo Group continues to grow in significance. The new AMT production reinforces our shared vision of transforming commercial mobility in India and other emerging markets.”
Jens Holtinger, Executive Vice President, Group Trucks Technology and CTO, Volvo Group, highlighted the strategic importance of the initiative, calling it
“a testament to Volvo’s trust in VECV’s competence and its role in the Group’s global supply chain.”
Vinod Aggarwal, MD & CEO, VE Commercial Vehicles, emphasized the customer benefits,
“As the Indian commercial vehicle segment shifts towards higher-capacity trucks, the Volvo Group AMT will bring world-class efficiency, improved fuel economy, reduced driver fatigue, and enhanced uptime for Eicher customers.”
The new plant will initially produce up to 40,000 AMT units annually, with local content and capacity ramping up in phases as per Volvo Group’s stringent global standards.
This initiative aligns closely with the Government of India’s ‘Make in India’ mission, reflecting VECV’s commitment to technological advancement, sustainable manufacturing, and localization in the commercial vehicle sector.
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