VE Commercial Vehicles Limited (VECV) has planned to invest around Rs. 1200 crore by the end of 2014, in order to introduce new models and expand the production capacity in India. VEHC happens to be a Joint Venture (JV) between Swedish auto maker Volvo Group and domestic player Eicher Motors. Meanwhile, Eicher Motors will also concentrate on the launch of its trucks by the end of 2013, which will be developed by incorporating the technology of Volvo Group.
Vinod Aggarwal, the Chief Executive Officer (CEO) of VEHC, said, “This year our production capacity of trucks and buses will be 6,500 units per month, up from 5,500 units last year. Our aim is to take it up to 8,000 units per month by 2015.”
He further added that the auto maker has set a goal of achieving a yearly production capacity of about 1,00,000 units by the end of 2015, depending on the market demand. Reportedly, the company is not planning to set up a new plant for production and rather, the expansion process will be carried at its existing unit at Pithampur, Madhya Pradesh. On this, Aggarwal added, “It will become operational by July this year with an initial capacity of 25,000 units per annum. When fully mature by 2015-16, the plant will have a total capacity to produce 1,00,000 units per annum.”
With the expansion of its manufacturing plant, the auto maker is also planning to ship the medium duty, five and eight litre engines to Volvo, along with meeting the demand in India. Commenting on the proposed investment for the expansion plan, Aggarwal said, “From the beginning of the JV till 2012-end the company has invested Rs 1,300 crore and we will invest another Rs 1,200 crore on ongoing projects like engine plant, bus body plant, new products and further capacity increase in 2013 and 2014 to meet the requirement for 2015.”
Interestingly, VECV ventured in the Indian market in July 2008 and its operations include the entire line-up of VE Powertrain, Eicher trucks & buses, Eicher's components and the sales as well as distribution network of Volvo trucks India.
