VECV to invest ₹544 crore in new automated manual transmissions plant

VE Commercial Vehicles, a joint venture between the Volvo Group and Eicher Motors, announced on Thursday an investment of Rs 544 crore to set up a production facility for Volvo Group's 12-speed automated manual transmissions.

The greenfield factory will be established at Vikram Udyogpuri Integrated Industrial Township, near Ujjain, Madhya Pradesh, the company said in a statement.

The investment in automated manual transmission (AMT) production will cater to the needs of Eicher heavy-duty truck customers in India and the Volvo Group in India and select markets in the Asia-Oceania region, it added.

As the global manufacturing hub for Volvo Group's 5 & 8 Litre (MDEP) engines since 2013, VECV's Pithampur factory has been a pioneer in making in India for the world, the company said.

"The new investment to assemble and produce the Volvo Group AMT is built on the bedrock of this trust and technical capability. It marks another significant step towards our vision of becoming a leading CV player in India and other emerging markets by driving modernisation in commercial transportation," Eicher Motors Chairman Siddhartha Lal said.

Volvo Group Senior Leader and Chairperson VE Commercial Vehicles, Sofia Frandberg, said the investment by VECV represents yet another win-win synergy with the Volvo Group, leveraging the technical and industrial capabilities that have been built up over the past 18 years.

"During this time, VECV has repeatedly demonstrated its leadership in the commercial vehicle market through the timely introduction of future-ready solutions that address customer needs in the rapidly transforming industry," she added.

The new facility will have an initial capacity to produce up to 40,000 units per annum, with production and local content to be gradually ramped up in line with Volvo Group's global processes and quality standards, VECV said.

The Volvo Group's 12-speed AMT has been globally proven to reduce driver fatigue and improve fuel economy, productivity and Uptime in demanding operations.