Volvo Eicher Commercial Vehicles (VECV), a joint venture between Volvo Group and Eicher Motors, would invest Rs 288 crore at its Pithampur plant in Madhya Pradesh, a top company official said on Thursday.
This investment would give the group a complete facility in India for manufacturing and assembling the new medium duty engine which would be introduced in Volvo group's trucks and buses worldwide over the years, VECV Chief Executive Vinod Aggarwal told reporters in Kolkata.
Aggarwal said the engine capacity would also be ramped up from 60,000 units to 1.60 lakh units by 2016-17.
During 2011, the company sold more than 49,000 vehicles registering growth of 25 per cent with net sales touching Rs 4,916 crore.
In the bus segment, VECV recorded a market share of 9.7 per cent for Eicher branded buses in 2011 against 6.7 per cent in 2010, he said.