New Delhi, Oct 9 (NationPress) VE Commercial Vehicles (VECV), a partnership between Volvo Group and Eicher Motors, revealed on Thursday an investment of Rs 544 crore (approximately 576 million Swedish Krona) aimed at establishing a new factory dedicated to the production and final assembly of Volvo Group’s sophisticated 12-speed Automated Manual Transmission (AMT) systems.

The new greenfield plant will be located at the Vikram Udyogpuri Integrated Industrial Township near Ujjain, Madhya Pradesh.

This facility represents yet another significant milestone in the 18-year-long fruitful collaboration between Volvo Group and Eicher Motors, further solidifying India’s role as a pivotal manufacturing hub for the global automotive sector.

Sofia Frandberg, Chairperson of VE Commercial Vehicles and Senior Leader at Volvo Group, noted that this investment showcases the growing confidence and synergy between the two entities.

“This investment signifies another mutually beneficial collaboration with the Volvo Group and utilizes the robust technical and industrial expertise we have developed over the past 18 years,” she stated.

Siddhartha Lal, Chairman of Eicher Motors, mentioned that this initiative further fortifies the technological foundation of their joint venture.

“Since our inception in 2008, our collaboration has consistently produced advanced programs. This new AMT project is rooted in trust and capability, marking another key step towards our ambition of being a leading commercial vehicle player in India and other emerging markets,” he said.

Jens Holtinger, Executive Vice President of Group Trucks Technology and Volvo Group CTO, emphasized that the new AMT facility illustrates the Volvo Group’s dedication to effective and cooperative global manufacturing.

“VECV has evolved into a fundamental component of the Volvo Group’s supply chain over the years, and this investment signifies a new chapter in our successful partnership,” he remarked.

Vinod Aggarwal, Managing Director and CEO of VE Commercial Vehicles, underscored the transformative influence of AMT technology on the Indian commercial vehicle sector.

“As the market shifts towards higher-capacity vehicles, Eicher truck customers and drivers will reap the benefits of Volvo Group’s top-tier AMT technology, which boosts fuel efficiency, minimizes driver fatigue, and enhances productivity,” he noted.

The upcoming facility will adhere to Volvo Group’s global standards and aligns with the Government of India’s ‘Make in India’ initiative.

The plant is projected to initially produce up to 40,000 units annually, with production and local sourcing expected to gradually increase in accordance with Volvo’s quality standards.