Volvo Group and Eicher Motors have set aside an investment of Rs 400 Crore to establish a new truck manufacturing plant in Bhopal, Madya Pradesh. Celebrating 10 years of partnership, the VECV (Volvo Eicher Commercial Vehicles) also confirmed that the MP Government has already allotted a land for the new plant and the construction of the manufacturing plant will begin soon.
VECV expects the new plant in Bhopal to be up and running in about 18 months and will have an initial capacity to make 40,000 trucks. The existing capacity at the company's plant in Indore is about 90,000 units and will take the total capacity to 1.30 lakh units and also generating a lot of employment opportunities in the state.
Volvo Eicher Commercial Vehicles is a joint venture between Volvo Group and Eicher Motors and has seen to be running on a successful business model with a yearly average growth of 18% in the last 10 years and an annual turnover of Rs 10,200 crore last financial year.
Siddhartha Lal, MD & CEO, Eicher Motors further says that this partnership has been extremely fruitful for the company and has seen a strong performance in the last 10 years. He further added that "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, but we have also been able to contribute to the cost-reduction opportunities for the Volvo Group through a supply of cost-effective engines from India. As we move into the next decade, we reiterate our strong commitment to this partnership.”
Martin Lundstedt, President and CEO, Volvo Group said: "India is a home base for Volvo Group, with a presence of over 2 decades across our various business lines and we reiterate our strong commitment to the future of the country and VE Commercial Vehicles.”
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 INR 400 Crs, 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."
Volvo Eicher CV is also a manufacturing hub for the medium-duty EURO VI engines for Volvo Group and makes these engines company's plant in Pithampur. They are also being exported to Europe and Asia for the Volvo Group. This also means that the company is already ready to go and will be ready with its BS-VI fleet ahead of the April 2020 deadline.