By APA Bureau:
Commemorating the completion of 10 years of partnership between the Volvo Group and Eicher Motors, VE Commercial Vehicles (VECV), the joint venture between the two, will set up a green-field truck manufacturing plant in Bhopal investing around Rs 400 crore. The Madhya Pradesh Government has allotted land for the new plant. Work for the plant is expected to start soon.
The target is to complete the plant in 18 months. It will have an initial capacity of 40,000 trucks. This will be in addition to the capacity of 90,000 trucks at Pithampur, near Indore.
With a strong foundation built on mutual trust, respect and win-win approach, the joint venture has grown from strength to strength over the years to put VECV in a very good position. It has been having an average annual growth of 18 percent in the last ten years. In 2017-18 VECV had a turnover of Rs 10,200 crore.
The entire Board of Directors of AB Volvo was in India to celebrate the highly successful joint venture in India.
Martin Lundstedt, President and CEO, Volvo Group, said, “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 modernization 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.”
Siddhartha Lal, MD and 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 four to 55-tonne GVW market. VECV has benefited from this partnership, and 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 this partnership.”
Håkan 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 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 today an exclusive manufacturing hub for the medium-duty Euro-6 engines for the Volvo Group. 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.
The JV between Volvo Group and Eicher has been successfully driving modernisation in commercial transportation in India and the developing world. In line with this vision, VECV successfully developed and launched technologically advanced Eicher Pro series of trucks and 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.
In operation since July 2008, VECV includes the complete range of Eicher branded trucks and buses, VE Powertrain (engines), Eicher Engineering Components, along with the sales and distribution of Volvo Trucks in India.