VE Commercial Vehicles to Manufacture Volvo Group’s Advanced 12-Speed AMT in India

In a major move toward advanced automotive manufacturing, VE Commercial Vehicles Ltd. (VECV) — a joint venture between Volvo Group and Eicher Motors Ltd. announced that it will produce the Volvo Group’s globally proven 12-speed Automated Manual Transmission (AMT) in India.

The company has committed an investment of ₹544 crore (about 576 million Swedish Krona) to establish a state-of-the-art greenfield facility at Vikram Udyogpuri Integrated Industrial Township, near Ujjain, Madhya Pradesh.

This new plant will cater to Eicher’s Heavy-Duty truck customers in India and support Volvo Group’s requirements in select Asia-Oceania markets. Known for enhancing fuel economy, driver comfort and vehicle uptime, the Volvo 12-speed AMT will bring world-class transmission performance to Indian roads.

Strengthening an 18-Year Global Partnership

This investment reinforces the 18-year partnership between Volvo Group and Eicher Motors, a collaboration that has consistently driven modernization in India’s commercial vehicle sector. Since 2013, VECV’s Pithampur factory has served as the global manufacturing hub for Volvo Group’s 5- and 8-litre (MDEP) engines, exporting high-quality powertrains worldwide. The facility stands as a proud example of ‘Make in India for the World’, showcasing India’s growing role in advanced vehicle manufacturing.

Sofia Frandberg, Chairperson, VE Commercial Vehicles and Senior Leader, Volvo Group, said: “This investment showcases how VECV continues to combine Volvo Group’s technology with India’s strong manufacturing capability. Over the years, our partnership has repeatedly delivered innovations that anticipate industry needs.”

Siddhartha Lal, Chairman, Eicher Motors Ltd., added: “Since 2008, our joint venture has steadily grown in technical depth and strategic impact. Localizing the production of Volvo’s AMT in India is a natural step forward — one that strengthens our goal of becoming a leading commercial vehicle player across emerging markets.”

A New Milestone in Global Supply Chain Excellence

Jens Holtinger, Executive Vice President, Group Trucks Technology and Chief Technology Officer, Volvo Group, said: “The new manufacturing hub at VECV demonstrates how the Volvo Group builds efficient and reliable global supply chains through trusted partnerships. VECV’s competence and commitment have made it an essential part of our global production network.”

Vinod Aggarwal, Managing Director & CEO, VE Commercial Vehicles, stated: “As India’s truck industry shifts to higher-capacity, high-performance vehicles, access to Volvo Group’s proven AMT will help Eicher customers experience better fuel efficiency and reduced driver fatigue. The new facility supports the Government of India’s Make in India vision, and we appreciate the strong support of the Madhya Pradesh Government.”

Built for the Future

The upcoming AMT plant will begin with an annual capacity of 40,000 units, with production and localization ramping up in alignment with Volvo Group’s global quality standards. This facility will further strengthen India’s role as a hub for advanced commercial vehicle technologies.

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