VE Commercial Vehicles Ltd (VECV), a joint venture between Eicher Motors Limited and Volvo Group, has announced plans to manufacture Volvo’s advanced 12-speed Automated Manual Transmission (AMT) in India. The company will invest ₹544 crore (around 576 million Swedish Krona) to set up a new greenfield factory at the Vikram Udyogpuri Integrated Industrial Township near Ujjain, Madhya Pradesh.
🚛 A Big Boost to ‘Make in India’
This new plant will serve both domestic and select Asia-Oceania markets, marking another major milestone in the 18-year partnership between Eicher and Volvo.
The project aligns with the Government of India’s ‘Make in India’ initiative, further strengthening India’s position as a global manufacturing hub for advanced commercial vehicle technology.
⚙️ About the 12-Speed AMT
Volvo’s 12-speed Automated Manual Transmission is globally recognized for:
- Reducing driver fatigue
- Improving fuel efficiency
- Boosting productivity and uptime
The AMT units produced in India will be used in Eicher heavy-duty trucks and also exported to Volvo Group operations across Asia and Oceania. Approximately 90% of production will be supplied to Volvo.
🏭 Key Details
- Investment: ₹544 crore
- Location: Vikram Udyogpuri Industrial Township, Ujjain (Madhya Pradesh)
- Annual capacity: Up to 40,000 units
- Purpose: Production and final assembly of Volvo’s 12-speed AMT
- Market: India and select international regions
💬 What the Leaders Said
Sofia Frandberg, Chairperson, VECV, called the project “another win-win synergy” with Volvo Group, leveraging years of industrial capability.
Siddhartha Lal, Chairman, Eicher Motors, said the initiative reflects the company’s vision to “become a leading commercial vehicle player in India and emerging markets.”
Vinod Aggarwal, MD & CEO, VECV, added that the AMT’s global success will help Indian truck drivers and fleet owners improve efficiency and comfort on the road.
🧭 Why This Matters
This investment highlights India’s growing role in global automotive manufacturing and brings world-class drivetrain technology to the country. The move is expected to generate local employment, boost exports, and support cleaner and more efficient transport solutions.
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