By Priya Singh
3021 Views
Updated On: 26-Feb-2025 06:19 AM
VE Commercial Vehicles is investing in Madhya Pradesh to expand electric truck production, enhance infrastructure, and boost industrial growth in the state.
Key Highlights:
VE Commercial Vehicles (VECV), a joint venture of India’s Eicher Motors and Sweden’s Volvo Group, is investing Rs 1,500 crore to expand its operations in Madhya Pradesh. The company already has manufacturing plants in Bhopal and Pithampur, Dhar district.
This investment will help to set up a modern research and development center, boost the production of automotive parts, and manufacture new commercial vehicle manufacturing units, with a focus on electric vehicles (EVs).
Leadership Insights:
Vinod Aggarwal, CEO of VE Commercial Vehicles, praised the Madhya Pradesh government’s efforts to promote automation and transparency to improve ease of business. He stated, “We plan to further invest another Rs 1,500 crore in new plants in Madhya Pradesh for commercial vehicles, specifically electric vehicles, automotive parts and assemblies, capacity expansion, and a world-class technology centre.”
He also mentioned, “The recently launched new investment policy 2025 has made Madhya Pradesh a leading industrial state by offering sector-specific incentives and simplified regulations. The state has a large land pool for industries and good power availability.”
Vinod Aggarwal emphasised the need for a skilled workforce by improving vocational training and updating educational curriculum. He also stressed the importance of expanding infrastructure, especially transport and communication networks, for better industrial connectivity. Additionally, he suggested developing industries beyond existing hubs by improving connectivity, residential facilities, and infrastructure in emerging areas.
Eicher Pro X Electric truck
With the recent launch of a dedicated manufacturing facility for the Eicher Pro X electric trucks in Bhopal, the new investment will expand Pro X truck production to meet growing logistics demand across India. This will also strengthen the company's position in the Small Commercial Vehicle (SCV) segment.
About VECV
VECV, a joint venture between Sweden’s Volvo Group and India’s Eicher Motors, has established a strong presence in India’s commercial vehicle market, especially in the light and medium-duty truck segments, where it leads the market. The new facility is part of VECV's advanced, Industry 4.0-compliant factory complex in Bhopal.
Due to changing logistics needs and environmental regulations, India’s commercial vehicle industry is shifting toward more sustainable and efficient solutions. With the rise of e-commerce and quick commerce, there has been a growing demand for vehicles suited for last-mile delivery.
Also Read: VECV Opens New Facility for Eicher Pro X Trucks in Bhopal
CMV360 Says
VE Commercial Vehicles is investing ₹1,500 crore in Madhya Pradesh to make more electric trucks and automotive parts. The state has good policies and facilities for industries to grow. The company also plans to improve skills and infrastructure to support industries.