VE Commercial Vehicles, a JV between the Volvo Group and Eicher Motors is planning to invest Rs 2,500 crore in India, by 2013.
Of the total capex, the JV has already invested Rs 700 crore in 2011. It is setting up an engine manufacturing unit on a 12-acre plot at
Pithampur in Madhya Pradesh. The proposed unit will make 1,00,000 medium-duty five- and eight-litre automotive engines annually and will be operational by June 2013. The plant will start pre-production by December 2012. These engines are also being adapted for Euro III and IV emission requirements and the same will be used for Volvo-Eicher heavy duty trucks.
This apart, Eicher Motors is setting up a bus body building plant in Dhar, Madhya Pradesh, in phased manner. The company will be investing Rs 125 crore in the first phase. The plant with a capacity to produce 10,000 buses will begin production by the second quarter of 2013.