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. The plant will have an initial capacity of 40,000 trucks, in addition
to the capacity of 90,000 trucks at Pithampur, near Indore.
VECV has recorded a yearly
average growth of over 18 pc in last ten years with turnover of Rs 10200 crore in 2017-18. The
entire Board of Directors of AB Volvo was present on the occasion to celebrate
the highly successful joint venture in India.
Speaking on the occasion, Martin
Lundstedt, President and CEO, Volvo Group, noted, “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 modernsation
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.”
Also commenting on the
occasion, Siddhartha Lal, MD & 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. Not only 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
Håkan 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 400 crore,
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 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 state-of-the-art manufacturing facility in
Pithampur, are being exported to Europe and Asia to take care of the needs of
the Volvo Group.
VECV has successfully
developed and launched technologically
advanced Eicher Pro series of trucks
& buses by incorporating a lot of
Volvo Group technology. Based on this, VECV is all set to participate in huge
growth opportunities in the Indian economy as well as the commercial vehicle
industry in both trucks and buses.