New Delhi, Oct 9 – Volvo Group and Eicher Motors have unveiled plans to set up a new factory in central India. The joint venture, VE Commercial Vehicles, will invest ₹544 crore (about 576 million Swedish krona) to build a plant that will produce and assemble Volvo’s advanced 12‑speed Automated Manual Transmission (AMT) systems.
The greenfield factory will sit in the Vikram Udyogpuri Integrated Industrial Township near Ujjain in Madhya Pradesh. It is a big step for the 18‑year partnership that has already helped make India an important hub for global automotive manufacturing.
Sofia Frandberg, chairperson of VE Commercial Vehicles and a senior leader at Volvo Group, said the new investment shows growing trust and synergy between the two companies. “This is another win‑win collaboration,” she added. “It builds on the strong technical and industrial capabilities we’ve developed together over the last 18 years.”
Eicher Motors’ chairman, Siddhartha Lal, echoed that sentiment. “Since 2008, our partnership has consistently delivered advanced programmes,” he said. “The AMT project is built on trust and capability and is another key step toward our goal of becoming a leading commercial vehicle player in India and other emerging markets.”
Volvo Group’s Group Trucks Technology CTO, Jens Holtinger, highlighted the commitment to efficient, collaborative manufacturing. “VECV has become a core part of our supply chain, and this investment marks a new chapter in our successful relationship,” he noted.
Managing Director and CEO of VE Commercial Vehicles, Vinod Aggarwal, talked about the AMT’s impact on India’s commercial fleet. “Commercial vehicles are moving toward higher capacity,” he said. “Customers and drivers will benefit from Volvo’s world‑class AMT, which improves fuel efficiency, reduces driver fatigue, and boosts productivity.”
The new plant will meet Volvo’s global standards and align with India’s ‘Make in India’ vision. It will initially produce up to 40,000 AMT units per year, with capacity and local sourcing to grow steadily as Volvo meets its quality benchmarks. This facility underscores the growing strength of Volvo Group and Eicher Motors in India’s automotive sector and highlights the country’s importance as a manufacturing center for global commercial vehicles.
Source: ianslive
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