Press Release, 9 October 2025
VE Commercial Vehicles (VECV), the joint venture of Volvo Group and Eicher Motors, has announced a major ₹544 crore investment (roughly SEK 576 million) to set up a greenfield factory near Ujjain, Madhya Pradesh, dedicated to producing Volvo’s 12-speed Automated Manual Transmission (AMT). The new facility, located in the Vikram Udyogpuri Integrated Industrial Township, will handle final assembly and manufacturing of this advanced transmission technology.
As part of this strategic push, VECV anticipates an initial output capacity of 40,000 AMT units annually, with plans to ramp up gradually and localize components in step with Volvo’s global quality routines. Around 90% of the units produced will serve Volvo’s international operations, while the remaining portion will be integrated into Eicher’s heavy-duty trucks in India.
Leadership from both partners stressed that this move builds on nearly two decades of cooperation and shared technical growth. Sofia Frandberg, Chairperson of VECV and senior Volvo leader, called the investment a “win-win synergy” that leverages the firm’s developed industrial capabilities. Eicher Chairman Siddhartha Lal described it as a milestone in VECV’s technological maturity and its ambition to lead commercial vehicle innovation in India and emerging markets. Jens Holtinger, Volvo’s Chief Technology Officer, said the project strengthens the efficiency of Volvo’s global supply chain and signals deep trust in VECV’s competencies.
VECV’s MD & CEO, Vinod Aggarwal, emphasized that this AMT technology proven to reduce driver fatigue, boost fuel efficiency, and enhance uptime—aligns with India’s shift toward higher capacity vehicles and the government’s Make in India vision. With this initiative, VECV is not only strengthening its role in Volvo’s global ecosystem but also reinforcing its position in India’s evolving commercial vehicle landscape.
Source: Angelnews India, ACKO Drive , ScanX, Capital Market, BusinessWorld
