Eicher Motors, which has a 50:50 joint venture with Volvo for trucks and buses (VECV), Monday announced that the JV plans to set up a new greenfield truck manufacturing plant at an investment of Rs 4 billion in Bhopal.
"The Madhya Pradesh government has allotted land for the new plant and work to set up this plant is expected to start soon," Eicher Motors said in a BSE filing.
"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," it added.
Volvo Group and Eicher Motors are commemorating completion of 10 years of partnership.
Hkan Karlsson, President Volvo Group Trucks Asia and JVs and Chairman, VECV said, "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".