VE Commercial Vehicles (VECV), a joint venture between Volvo Group and Eicher Motors, has announced an investment of Rs 544 crore to establish a greenfield factory at Vikram Udyogpuri Industrial Township near Ujjain, Madhya Pradesh.

The new facility will produce Volvo Group’s globally recognized 12-speed automated manual transmission (AMT) with an initial annual capacity of 40,000 units. This initiative aims to enhance local manufacturing capabilities in line with Volvo’s global quality standards and support India’s commercial vehicle modernization. The AMT technology is expected to improve fuel efficiency, reduce driver fatigue, and boost productivity, aligning with the Government of India’s Make in India vision.

VECV continues to expand its role as a key supplier in the commercial vehicle industry across 40 countries. VECV’s leadership emphasised that this investment builds on 18 years of successful collaboration between Volvo and Eicher, strengthening their position in India and select Asia-Oceania markets.