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Updated On: 13-Oct-2025 05:37 AM
VECV will invest ₹544 crore to set up a Volvo AMT production hub in Madhya Pradesh, boosting Make in India and expanding India’s global automotive role.
₹544 crore investment in Madhya Pradesh.
New facility for Volvo 12-speed AMT systems.
40,000 units of annual production capacity.
Supports the Make in India initiative.
Builds on 18-year Volvo–Eicher partnership.
VE Commercial Vehicles (VECV), a joint venture between Volvo Group and Eicher Motors, has announced a major investment of ₹544 crore to establish a new greenfield facility in Vikram Udyogpuri Integrated Industrial Township near Ujjain, Madhya Pradesh. This plant will be dedicated to manufacturing Volvo Group’s 12-speed Automated Manual Transmission (AMT) systems, further strengthening India’s role as a global hub for advanced automotive components.
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The upcoming VECV facility will operate under Volvo Group’s global manufacturing standards with an initial production capacity of up to 40,000 AMT units per year. The company also aims to increase local content and production in the coming years while maintaining Volvo’s global quality benchmarks.
This investment reflects the strong and growing partnership between Volvo and Eicher, which began in 2008. Over the last 18 years, the two companies have consistently introduced efficient, future-ready commercial vehicle technologies for both Indian and international markets.
VECV’s ₹544 crore investment supports the Government of India’s Make in India initiative, which promotes domestic manufacturing and exports. The new plant will help position Madhya Pradesh as a key player in the field of advanced automotive manufacturing.
VECV already plays a vital role in global vehicle component production. Its Pithampur plant serves as the global manufacturing hub for Volvo’s 5-litre and 8-litre MDEP engines. The new facility in Ujjain will build upon this foundation, expanding India’s contribution to Volvo’s international production network.
Sofia Frandberg, Chairperson, VECV and Senior Leader, Volvo Group, said: “This investment represents another win-win synergy with the Volvo Group and leverages the strong technical and industrial capabilities built over the past 18 years. VECV has demonstrated its leadership by introducing future-ready solutions for a rapidly transforming industry.”
Siddhartha Lal, Chairman, Eicher Motors Ltd., added: “The AMT investment is built on a foundation of trust and shared capability developed through years of collaboration. It reinforces our vision to be a leading commercial vehicle player in India and other emerging markets by driving modernisation in transport.”
Vinod Aggarwal, Managing Director & CEO, VECV, stated: “As India transitions towards higher-capacity vehicles, Eicher customers will benefit from Volvo Group’s globally proven AMT technology, which reduces driver fatigue, improves fuel efficiency, and enhances uptime. We are grateful to the Government of Madhya Pradesh for its continued support.”
The new AMT facility will introduce Volvo Group’s proven transmission technology to India, providing benefits such as:
Improved fuel efficiency
Reduced driver fatigue
Higher vehicle uptime
These advancements will help Indian transport operators achieve better productivity and operational efficiency, especially as the sector moves toward automation and modernisation.
The facility will also help generate employment, boost local supplier participation, and contribute to export growth. By becoming part of Volvo’s global supply network, India will further solidify its reputation as a trusted partner in advanced manufacturing.
This investment comes at a time when India’s EV and mobility industry is expanding rapidly. Valued at US$2 billion in 2023, the sector is projected to reach US$7.09 billion by 2025, with annual EV sales expected to hit 10 million units by 2030.
While the new plant focuses on AMT systems, it represents a larger shift towards innovation, sustainability, and technology-driven mobility solutions in India.
The ₹544 crore investment by VECV is a major step forward for India’s automotive industry. It not only strengthens Volvo Group’s global manufacturing footprint but also boosts India’s position as a world-class production and export hub.
With this new facility, Madhya Pradesh is set to become a centre of advanced automotive manufacturing, supporting both economic growth and technological progress in the country’s vehicle industry.
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VECV’s ₹544 crore investment marks a strong step toward India’s growth as a global automotive hub. The new facility in Madhya Pradesh will enhance local manufacturing, create jobs, and bring advanced AMT technology to India. This move strengthens Volvo and Eicher’s long-term partnership while supporting the government’s Make in India vision for industrial progress.