Eicher Motors Subsidiary to Invest ₹544 Crore in New Transmission Plant for Volvo Group

Gurugram, October 9, 2025: VE Commercial Vehicles Ltd (VECV) has announced that it will be investing ₹544 crore (approximately 576 million Swedish Krona), to manufacture Volvo Group’s 12-speed Automated Manual Transmissions (AMT) in India for both domestic and select Asia–Oceania markets.

VE Commercial Limited is a joint venture between Eicher Motors Ltd and Volvo Group. It is a commercial vehicle company and manufactures mainly trucks and buses. It was established in 2008 and is headquartered in Gurugram, Haryana.

Key Production Hub For The Volvo Group

The company announced that it will set up the greenfield facility at Vikram Udyogpuri Integrated Industrial Township near Ujjain, Madhya Pradesh. The facility will serve as a key production hub for the Volvo Group and Eicher heavy-duty trucks. The project aims to strengthen India’s role as a global manufacturing base for advanced commercial vehicle technology and to align the efforts with the “Make in India” initiative.

Win-Win Synergy

Sofia Frandberg, Chairperson, VE Commercial Vehicles and Senior Leader, Volvo Group, said the investment reflects a “win-win synergy” leveraging 18 years of collaboration, adding that the company has demonstrated leadership by delivering “future-ready solutions that meet customer needs in a rapidly transforming industry.”

Siddhartha Lal, Chairman of Eicher Motors Ltd, said, “The new investment to assemble and produce the Volvo Group AMT is built on trust and technical capability. It’s a significant step towards our vision of becoming a leading CV player in India and emerging markets.”

Jens Holtinger, Executive Vice President, Group Trucks Technology and Chief Technology Officer, Volvo Group, added, “The new manufacturing hub at VECV is an excellent example of leveraging partnerships to make our supply chain more efficient.”

Vinod Aggarwal, MD & CEO, VE Commercial Vehicles, highlighted that the new AMT factory would “give Indian customers access to globally leading transmission technology proven to enhance fuel efficiency and reduce driver fatigue,” noting that it would be developed to global Volvo standards.

Capacity of 40,000 Units Per Annum

The facility will initially have a capacity of 40,000 units per annum. The company said that it has future plans to increase production and local content over time. The company will export nearly 90% of the AMT units produced to the Volvo Group. The remaining production will be used to power Eicher Heavy Duty Trucks in India.

Eicher Motors Falls by 0.30%

As of 10:40 AM, Eicher Motors Limited share price was down by 0.30%, or 21 points, and was trading at ₹6,881.50. The traded volume stood at 1.22 lakh shares, with the company’s market cap at ₹1,89,320 crore.

REF: https://nsearchives.nseindia.com/corporate/EICHERMOT_08102025225026_EMLVECVPressReleaseOctober082025Signed.pdf

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