VE Commercial Vehicles (VECV), a joint venture between Volvo Group and Eicher Motors, has announced an investment of ₹544 crore (approximately 576 million Swedish Krona) to establish a new factory dedicated to producing 12-speed Automated Manual Transmission (AMT) systems. The upcoming plant will be located in Vikram Udyogpuri Integrated Industrial Township near Ujjain, Madhya Pradesh, and is set to boost India’s manufacturing capabilities in high-value automotive technologies.
Strengthening a Global Partnership
The new AMT facility marks another milestone in the 18-year partnership between Volvo Group and Eicher Motors, which has been instrumental in advancing India’s commercial vehicle segment. The collaboration has consistently delivered cutting-edge mobility solutions that combine Volvo’s global engineering standards with Eicher’s local manufacturing expertise.
According to VECV Chairperson Sofia Frandberg, the new investment reinforces the strong trust between the two companies and underscores their shared commitment to innovation and sustainability. The plant is designed to meet Volvo Group’s global production benchmarks, ensuring that components manufactured in India integrate seamlessly with international supply chains.
Driving Efficiency and Technological Advancement
The new facility will focus on producing Volvo’s 12-speed AMT systems, known for improving vehicle efficiency and driver comfort. By automating gear shifts, AMT technology optimises fuel use, reduces driver fatigue, and enhances vehicle productivity — all critical factors for modern logistics operations.
Vinod Aggarwal, Managing Director and CEO of VECV, highlighted that as the Indian market moves toward higher-capacity commercial vehicles, demand for advanced drivetrains will rise sharply. The AMT plant, he said, will ensure Indian manufacturers and fleet operators gain access to globally proven, energy-efficient technology.
The plant’s initial capacity will allow production of up to 40,000 units annually, with plans to scale up in line with demand and export opportunities. Local sourcing and value addition will be ramped up to align with the government’s ‘Make in India’ and Atmanirbhar Bharat initiatives.
Catalysing Industrial Growth and Employment
VECV’s investment is expected to generate substantial employment and boost ancillary industries in Madhya Pradesh. By positioning the region as a manufacturing hub for high-end automotive components, the initiative aligns with India’s broader goal of enhancing global competitiveness in the commercial vehicle sector.
With this expansion, VECV aims to consolidate its position as one of the most technologically advanced commercial vehicle manufacturers in emerging markets. The new plant demonstrates how global partnerships can translate into domestic industrial strength and long-term economic value creation.