India continues to develop its position in the global commercial vehicle industry as VE Commercial Vehicles (VECV) announces a Rs. 5.44 billion (US$ 61.2 million) investment to establish a facility for Volvo Group's 12-speed Automated Manual Transmission (AMT) system.

VE Commercial Vehicles (VECV), a joint venture between the Volvo Group and Eicher Motors, will set up a greenfield facility for the production and final assembly of Volvo Group's 12-speed AMT system in Vikram Udyogpuri Integrated Industrial Township, near Ujjain, Madhya Pradesh.

The plant will be constructed in accordance with Volvo Group's global manufacturing standards and will initially have a production capacity of up to 40,000 units per annum, with plans to gradually increase local content and output in alignment with Volvo's global quality processes.

India-Sweden partnership

The investment continues the 18-year partnership between the Volvo Group and Eicher Motors. Since 2008, VECV has introduced fuel-efficient technologies to India's commercial vehicle industry. VECV's Pithampur plant serves as the global manufacturing hub for Volvo's 5-litre and 8-litre MDEP engines.

Sofia Frandberg, Chairperson of VECV and Senior Leader at Volvo Group, stated, "This investment leverages the technical and industrial capabilities developed over the past 18 years."

The Indian electric vehicle (EV) market, valued at US$ 2 billion in 2023, is projected to grow to US$ 7.09 billion by 2025. Industry forecasts indicate that annual EV sales could reach 10 million units by 2030, driven by expanding infrastructure and increasing consumer acceptance.

Siddhartha Lal, Chairman of Eicher Motors, stated, "The AMT investment builds upon capabilities developed through years of collaboration. It supports the objective of establishing a position in the commercial vehicle sector in India and other emerging markets."

Alignment with make in India

The facility aligns with the Government of India's Make in India initiative, positioning Madhya Pradesh as a centre for automotive manufacturing.

Vinod Aggarwal, Managing Director and CEO of VECV, stated, "As India transitions towards higher-capacity vehicles, customers will benefit from Volvo Group's AMT technology, which reduces driver fatigue, improves fuel efficiency, and enhances uptime. The support of the Government of Madhya Pradesh has been important for this development."

The AMT technology, already implemented in global markets, provides advantages in driver comfort, vehicle uptime, and fleet productivity as India's commercial vehicle segment moves towards greater efficiency and automation.

This investment positions VECV as a global manufacturing partner for the Volvo Group and contributes to the development of India's commercial vehicle sector and export capacity.