The greenfield factory will be established at Vikram Udyogpuri Integrated Industrial Township, near the historic city of Ujjain, Madhya Pradesh.
The new AMT facility will have an initial capacity to produce up to 40,000 units p.a. with production and local content to be gradually ramped up in line with Volvo Group’s global processes and quality standards.
VECV’s Pithampur factory has been the global manufacturing hub for Volvo Group’s 5 & 8 Liter (MDEP) engines since 2013.
Vinod Aggarwal, MD & CEO, VE Commercial Vehicles said, “As the Indian commercial vehicle industry moves towards higher capacity vehicles, Eicher truck customers and drivers will have access to Volvo Group’s globally leading AMT, which is proven to reduce driver fatigue and improve fuel economy, productivity and Uptime in demanding operations.”
VE Commercial Vehicles (VECV) is a joint venture between the Volvo Group and Eicher Motors. In operation since August 2008, the company produces and sells the complete range of Eicher branded trucks and buses in 40 countries, Volvo Buses India, exclusive distribution of Volvo Trucks in India, engine manufacturing and exports for Volvo Group, Eicher’s non-automotive engines and component business.
Eicher Motors is the listed parent of Royal Enfield, the global leader in middleweight motorcycles.
The company’s consolidated net profit jumped 9.42% to Rs 1,205.22 crore in Q1 FY26 as against Rs 1,101.4 crore posted in Q1 FY25. Total revenue from operations rose 14.76% year on year to Rs 5,041.84 crore in the quarter ended 30 June 2025.
The scrip shed 0.59% to currently trade at Rs 6857.90 on the BSE.