The Volvo Group and Eicher Motors propose to infuse Rs 500 crore to double
the commercial vehicle production capacity to 8,000 units per month in the next
three years.
VE Commercial Vehicles, the JV company, will set up a medium duty engine
plant at Pithampur in Madhya Pradesh at an investment of Rs 300 crore. It is
likely to be completed by 2013 with an initial capacity of 85,000 units per
year. The capacity is to be ramped up in a phased manner to more than one lakh
units per year by 2015.
Meanwhile, Royal Enfield, the two-wheeler arm of Eicher, plans to raise its
production capacity and set up a new facility. The company has neither finalised
the location nor the investment requirement of the project.
Also See:
Volvo-Eicher plan new engine plant in Madhya Pradesh