VE Commercial Vehicles (VECV), a joint venture between Volvo Group and Eicher Motors, has announced a major investment of ₹544 crore (approximately 576 million Swedish kronor) to establish a new greenfield manufacturing facility for the production and final assembly of Volvo Group’s advanced 12-speed Automated Manual Transmission (AMT) in India. The upcoming plant will be located at Vikram Udyogpuri Integrated Industrial Township near Ujjain, Madhya Pradesh.
This strategic move reinforces VECV’s commitment to ‘Make in India’ and marks a significant milestone in the 18-year-long partnership between Volvo Group and Eicher Motors. The new AMT production facility will serve both Eicher’s heavy-duty truck customers in India and Volvo Group’s operations across select Asia-Oceania markets, strengthening India’s role as a global manufacturing hub for advanced commercial vehicle technologies.
VECV already plays a crucial role in Volvo Group’s global supply chain, manufacturing 5-litre and 8-litre (MDEP) engines at its Pithampur plant since 2013. The new investment extends this legacy, focusing on bringing globally proven automation technology to India’s growing commercial vehicle sector.
Sofia Frandberg, Chairperson of VE Commercial Vehicles and Senior Leader at Volvo Group, highlighted the significance of the development:
“This investment represents yet another win-win synergy with Volvo Group and leverages the technical and industrial capabilities built over the past 18 years. VECV continues to lead India’s commercial vehicle industry with future-ready solutions designed to meet evolving customer needs.”
Echoing this sentiment, Siddhartha Lal, Chairman of Eicher Motors Limited, stated:
“Since its inception in 2008, the VECV joint venture has successfully delivered technologically complex and impactful programs. The new AMT initiative builds on this foundation of trust and technical strength, advancing our goal to become a leading commercial vehicle player in India and other emerging markets.”
Adding a global perspective, Jens Holtinger, Executive Vice President of Group Trucks Technology and Volvo Group CTO, commented:
“The new VECV manufacturing hub exemplifies how Volvo Group leverages strategic partnerships to enhance supply chain efficiency. Over the years, VECV has become a vital contributor to our global production ecosystem, and this AMT project strengthens that collaboration.”
On the technology front, Vinod Aggarwal, MD & CEO of VE Commercial Vehicles, emphasised the transformative benefits of AMT technology:
“As India’s commercial vehicle industry transitions toward higher-capacity trucks, Eicher customers will now gain access to Volvo Group’s world-leading AMT systems—proven to reduce driver fatigue while improving fuel economy, productivity, and uptime. The new facility will adhere to Volvo’s global manufacturing standards and aligns perfectly with the Government of India’s ‘Make in India’ vision.”
The new AMT factory will have an initial production capacity of 40,000 units per annum, with plans to gradually scale up local content and output in accordance with Volvo Group’s global quality and sustainability benchmarks.
Through this investment, VECV aims to strengthen India’s position as a global hub for commercial vehicle innovation while enabling sustainable and efficient transportation solutions for domestic and international markets.
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