New Delhi, Oct 9 (IANS) VE Commercial Vehicles (VECV), a joint venture between Volvo Group and Eicher Motors, on Thursday announced an investment of Rs 544 crore (about 576 million Swedish Krona) to set up a new factory for the production and final assembly of Volvo Group’s advanced 12-speed Automated Manual Transmission (AMT) systems.

The greenfield facility will come up at the Vikram Udyogpuri Integrated Industrial Township near Ujjain, Madhya Pradesh.

This new plant marks another milestone in the 18-year-long successful partnership between Volvo Group and Eicher Motors, strengthening India’s position as a key manufacturing hub for the global automotive industry.

Sofia Frandberg, Chairperson of VE Commercial Vehicles and Senior Leader at Volvo Group, said that the new investment reflects the growing trust and synergy between the two partners.

“This investment represents another win-win collaboration with the Volvo Group and leverages the strong technical and industrial capabilities we have built over the past 18 years,” she said.

Siddhartha Lal, Chairman of Eicher Motors, said the initiative further strengthens the joint venture’s technological foundation.

“Since its inception in 2008, our partnership has consistently delivered advanced programmes. This new AMT project is built on trust and capability and marks another important step towards our vision of becoming a leading commercial vehicle player in India and other emerging markets,” he said.

Jens Holtinger, Executive Vice President of Group Trucks Technology and Volvo Group CTO, said the new AMT facility demonstrates the Volvo Group’s commitment to efficient and collaborative global manufacturing.

“VECV has become a core part of Volvo Group’s supply chain over the years, and this investment marks a new chapter in our successful relationship,” he said.

Vinod Aggarwal, Managing Director and CEO of VE Commercial Vehicles, highlighted the transformative impact of the AMT technology on the Indian commercial vehicle industry.

“As the market moves towards higher-capacity vehicles, Eicher truck customers and drivers will benefit from Volvo Group’s world-class AMT technology, which enhances fuel efficiency, reduces driver fatigue, and improves productivity,” he said.

The new facility will be built to Volvo Group’s global standards and aligns with the Government of India’s ‘Make in India’ vision.

The plant will have an initial capacity to produce up to 40,000 units annually, with production and local sourcing to be ramped up gradually in line with Volvo’s quality benchmarks.