Key Highlights
- VE Commercial Vehicles (VECV) to invest ₹544 crore to manufacture Volvo Group’s 12-speed Automated Manual Transmission (AMT) in India.
- The new facility will be set up at Vikram Udyogpuri Integrated Industrial Township in Ujjain, Madhya Pradesh.
- The AMT technology is designed to reduce driver fatigue, improve fuel efficiency, and enhance productivity.
- Around 90% of the units produced will be exported to Volvo Group’s global network.
VE Commercial Vehicles Ltd (VECV), a joint venture between Volvo Group and Eicher Motors Ltd, has announced an investment of ₹544 crore (approximately 576 million Swedish Krona) to establish a new facility for the production of Volvo Group’s advanced 12-speed Automated Manual Transmission (AMT). The plant will be located at Vikram Udyogpuri Integrated Industrial Township, near Ujjain in Madhya Pradesh.
The investment marks a new milestone in the 18-year partnership between Volvo Group and Eicher Motors, strengthening India’s position as a global manufacturing hub for Volvo’s components. VECV’s Pithampur facility has been producing Volvo’s 5-litre and 8-litre engines since 2013 for both domestic and export markets.
Sofia Frandberg, Chairperson of VE Commercial Vehicles and Senior Leader at Volvo Group, said the new initiative showcases the growing synergy between the two companies. “This investment reflects the trust and confidence Volvo Group places in VECV’s technical and industrial capabilities. Over the past 18 years, VECV has consistently introduced future-ready solutions that address the evolving needs of the commercial vehicle sector,” she noted.
Eicher Motors Chairman Siddhartha Lal stated that the new project underscores the joint venture’s growing technological strength. “The new AMT manufacturing program reinforces our shared vision of driving modernization in commercial transportation and expanding our leadership in India and emerging markets,” Lal said.
Volvo Group Executive Vice President and Chief Technology Officer, Jens Holtinger, highlighted the efficiency gains from this collaboration. “The new VECV facility exemplifies how Volvo Group’s partnerships enhance manufacturing efficiency and reliability. VECV is now an integral part of our global supply chain,” Holtinger said.
Vinod Aggarwal, Managing Director and CEO of VECV, added that the AMT will significantly benefit Indian truck operators. “With the industry shifting towards higher-capacity vehicles, this technology will deliver improved fuel economy, reduced driver fatigue, and greater uptime. The facility will adhere to Volvo Group’s global standards and aligns with the government’s Make in India vision,” Aggarwal explained.
The greenfield plant will initially produce up to 40,000 units annually, with plans to ramp up production and local content gradually in accordance with Volvo Group’s global quality systems.
According to the company’s SEBI (LODR) disclosure, approximately 90% of the AMT units manufactured will be exported to Volvo Trucks Corporation. The project has been approved by VECV’s Board after a detailed evaluation and is expected to generate substantial commercial benefits.