The Joint Venture between Swedish auto giant, Volvo and Indian marque, Eicher Motors, has plans to invest Rs 1,200 crore starting from this year. This investment will be towards development of new products, increasing existing production capacity and starting up of new plant. Volvo Eicher Commercial Vehicles has hiked its production volume for 2013. The combined production of trucks and buses will be 6,500 units per month for the current year. VECV was manufacturing 5,500 vehicles per month during 2012. It is aiming to reach monthly product volume of 8,000 units by 2015.
The commercial vehicle marque will also be rolling out few new trucks in 2013. Backed by the trust and reliability of Eicher brand, these trucks will have the benefit of Volvo technology applied in drive train, cabin, power house and other areas.
Volvo Eicher Commercial Vehicles will be expanding its manufacturing base at Pithampur, Madhya Pradesh, to increase production capacity and also start building new trucks. An engine plant, which is under construction at Pithampur site, will take off in 2013 with an initial capacity of 25,000 units per year. VECV is targeting to produce 1,00,000 engine units per anum by 2015-16. The new plant will be producing five and eight litre capacity Volvo engines, which will be shipped to other countries.
VECV started off as a 50:50 JV in 2008. The company has invested Rs 1,300 crore in the four-year period since its start. The company inaugurated an engine plant at Pithampur in last year. VECV invested Rs 288 crore in this manufacturing unit which produces VE Powertrain of the Swedish marque.