VE Commercial Vehicles (VECV), a joint venture between Volvo Group and Eicher Motors, has announced a ₹544 crore investment to establish a new manufacturing facility for automated manual transmissions in Madhya Pradesh. The greenfield factory will be located at Vikram Udyogpuri Integrated Industrial Township near Ujjain.
The facility will manufacture Volvo Group’s 12-speed Automated Manual Transmission (AMT), which is designed to reduce driver fatigue and improve fuel economy and productivity in commercial vehicle operations.
The transmission will be supplied to Eicher Heavy Duty truck customers in India and to Volvo Group operations in India and select Asia-Oceania markets.
The investment marks another expansion of VECV’s manufacturing capabilities. The company has been operating since 2008 as a joint venture between Volvo Group and Eicher Motors, and currently produces engines and commercial vehicles at its Pithampur facility, which has served as a global manufacturing hub for Volvo Group’s 5 and 8-liter engines since 2013.
The new AMT facility is planned to have an initial production capacity of 40,000 units per year, with production and local content to be gradually increased according to Volvo Group’s global standards. The investment aligns with the Government of India’s Make in India initiative, which encourages domestic manufacturing.
Sofia Frandberg, Chairperson of VECV and Senior Leader at Volvo Group, described the investment as demonstrating the strength of the partnership between the two organizations. Siddhartha Lal, Chairman of Eicher Motors, characterized the project as representing the technical capabilities and trust built over the joint venture’s 18-year history.
VECV produces and sells commercial vehicles and buses in 40 countries under the Eicher brand, and also handles Volvo Buses India operations and the exclusive distribution of Volvo Trucks in India. The company is recognized as an industry leader in modernizing commercial transportation in India and developing markets.