Volvo bets big on India with Rs 288 cr in new truck facility
Sweden-based commercial vehicle maker AB Volvo on Friday announced a Rs 288-crore investment in its Indian joint venture Volvo Eicher Commercial Vehicles Ltd (VECV).business Updated: Jun 11, 2010 22:35 IST
Sweden-based commercial vehicle maker AB Volvo on Friday announced a Rs 288-crore investment in its Indian joint venture Volvo Eicher Commercial Vehicles Ltd (VECV).
This is the first time that a global truck-maker has decided to make India the hub for trucks, expanding the expertise of the country to beyond small cars.
India will be the global manufacturing hub and industrial base for the company’s Euro-III, IV, V and VI medium duty base engine requirements, as well as for the Volvo Group. The investment, which will be made next to VECV’s existing plant in Pithampur, will produce an additional 85,000 engines per annum.
“The investment gives Volvo group a complete facility in India to manufacture and assemble new medium duty engine which will be introduced in the Volvo Group’s trucks and buses worldwide over the next few years,” said Pat Osberg, president, trucks Asia and Chairman, VECV. “Additionally, these engines will also be used for Eicher’s range of heavy duty commercial vehicles.”
VECV currently produces 40,000 engines per annum in its Pithampur plant. It will ship 30,000 of the 85,000 engines made at the new facility to its assembly in France. The remaining 55,000 will be assembled in Pithampur itself.
“India was selected as the manufacturing hub both because of the potential for these engines in the domestic market as well as the low cost of manufacturing,” said Peter Karlsten, president, Volvo Powertrain.