VECV invests big in Bhopal
VE Commercial Vehicles (VECV), a joint venture between the Volvo Group and Eicher Motors, recently commemorated this decade-long partnership by announcing the setting up of a new Greenfield truck manufacturing plant in Bhopal.
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 within India. VECV’s vision is to be recognised as the industry leader driving modernisation in commercial transportation in India and the developing world. To commemorate the 10-yearlong partnership between Eicher Motors and Volvo Group, VECV has announced the setup of a new production facility at Bhopal that will draw an investment of `400
crore. Production will begin with light duty trucks, which will also cater to international markets. The target is to go on stream with this plant in the next 18 months with an initial capacity of 40,000 trucks, in addition to the capacity of 90,000 trucks at Pithampur, near Indore. The company plans to employ more than 2000 people at the facility, further exploring additional employment opportunities with an ancillary supplier base.
The facility will draw an investment of `400 crore; the target is to go on stream in the next 18 months
VECV has enjoyed a yearly average growth of over 18 per cent in the last 10 years and a turnover of `10,200 crore in 2017-18.
The entire Board of Directors of AB Volvo was present on the occasion to celebrate the highly successful joint venture in India. Speaking at the event, 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 modernisation 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.”
Also present was Siddhartha Lal, MD & CEO, Eicher Motors, who spoke of the fruitful partnership that is reflected in the strong performance of VECV. “Not only has VECV benefited from this partnership but we have also 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,” Lal said.
VECV is an exclusive manufacturing hub for the medium-duty Euro-VI engines for the Volvo Group and is a fine example of the ‘Make in India’ initiative of Government of India. 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. Commenting on the occasion, Håkan Karlsson, President, Volvo Group Trucks Asia & JVs and Chairman, VECV, said, “We have full confidence in the growth potential in the Indian market. With technologically superior products, VECV is at 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.”