Volvo-Eicher to set up new plant in Bhopal

VE Commercial Vehicles, a joint venture of Sweden’s Volvo Group and India’s Eicher Motors, will set up a new production facility at Bhopal, Madhya Pradesh with investment of over US$55 million

October 8, 2018

The US$55 million facility is expected to start production in 18 months with initial capacity of 40,000 trucks; Madhya Pradesh government has allotted land for the plant

VE Commercial Vehicles operates a plant at Pithampur, Madhya Pradesh, that has capacity of 90,000 trucks; Posted a turnover of US$1.4 billion in financial year 2017‐18

The joint venture has come up as an exclusive manufacturing base for medium‐duty Euro VI engines under the ‘Make in India’ initiative that are being to Europe and Asia

Looking to expand in the region, VE Commercial Vehicles had announced plans in August to set up an assembly plant in Bangladesh along with local player, Runner Motors

VE Commercial Vehicles Ltd, a joint venture of Sweden-based Volvo Group and India’s Eicher Motors Ltd, announced on October 8 that it would set up a new production facility at Bhopal, Madhya Pradesh. The greenfield truck manufacturing plant, which marks the joint venture’s 10th anniversary, will involve an investment of more than US$55 million. The facility is expected to start production in 18 months time with initial capacity of 40,000 trucks. The Madhya Pradesh state government has already allotted land for the new plant and work to set up this plant is expected to start soon.  

VE Commercial Vehicles currently operates a plant at Pithampur, near Indore in Madhya Pradesh, that has capacity of 90,000 trucks. Driven by strong demand in the region, the company has posted annual average growth of over 18 per cent with a turnover of US$1.4 billion in financial year 2017‐18. VE Commercial, which operates in the 4 to 55 tonne gross vehicle weight (GVW) segment, has been able to bring down operational expenses owing to sharing of resources by Volvo and Eicher. The venture has achieved this while offering technologically superior products at competitive prices.

As a result, the joint venture has come up as an exclusive manufacturing base for medium‐duty Euro VI engines for the Volvo Group under the ‘Make in India’ initiative. These engines, made at Pithampur, are being exported to Europe and Asia for the Volvo Group. VE Commercial Vehicles is also looking to tap the growing demand of commercial vehicles in India, been thrown up owing to the rising industrialisation. Looking to expand in the region, VE Commercial Vehicles had announced plans in August to set up an assembly plant in Bangladesh along with local manufacturer Runner Motors.

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