FCC

VECV to set up new production facility

2018-10-09

Commemorating the completion of 10 successful years of partnership between the Volvo Group and Eicher Motors, VE Commercial Vehicles (VECV) announced plans to set up a new greenfield truck manufacturing plant at Bhopal. The Madhya Pradesh Government has allotted land for the new plant and work to set up this plant is expected to start soon. The target is to go on stream with this plant in the next 18 months at an investment of around Rs 4 billion and an initial capacity of 40,000 trucks; in addition to the capacity of 90,000 trucks at Pithampur, near Indore.

The joint venture has grown from strength to strength over the years to put VECV in a very good position with an yearly average growth of over 18 per cent in last ten years with a turnover of Rs 102 billion in 2017-18.

The entire Board of Directors of AB Volvo is present on the occasion to celebrate the highly successful joint venture in India. Speaking on the occasion, Martin Lundstedt, President and CEO, Volvo Group, said, ?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 modernisation 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.?

Siddhartha Lal, Managing Director and CEO, Eicher Motors Ltd, said, ?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 ton GVW market. VECV has benefited from this partnership, at the same time, we have been able to contribute to the cost-reduction opportunities for the Volvo Group through supply of cost-effective engines from India. As we move into the next decade, we reiterate our strong commitment to this partnership.?

H?kan Karlsson, President Volvo Group Trucks Asia & JVs and Chairman, VECV, added, ?With the announcement of setting up of a new plant at an investment of Rs 4 billion, 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. The visit by the Board of Directors of AB Volvo reflects the strong commitment of Volvo Group to this partnership and we are looking forward to further develop the partnership to lead the rapid transformation in the industry.?

VECV is today an exclusive manufacturing hub for the medium-duty Euro VI engines for the Volvo Group and is a fine example of the ?Make in India? initiative of the Government of India. 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.