Volvo-Eicher to invest Rs. 400 crore in new production unit

VE Commercial Vehicles (VECV) - the joint venture between Volvo and Eicher, has announced plans to set up a new manufacturing facility in Bhopal, Madhya Pradesh with an investment of around Rs. 400 crore.

The facility will have an initial capacity of 40,000 units. The Madhya Pradesh government has already allocated land for the plant and construction is expected to begin soon. The company is aiming to make the factory functional in the next 18 months.

This year, VECV is celebrating 10 years of partnership between the Volvo Group and Eicher Motors. In the last decade, the company registered an average annual growth of 18% with a turnover of Rs. 10,200 crore in 2017-18.

The upcoming factory will be its second manufacturing facility in the state of Madhya Pradesh. The Pithampur facility, near Indore has a capacity of 90,000 units at present.