VECV to Manufacture Volvo Group’s Advanced AMTs in India

09 Oct 2025 CW Team

VE Commercial Vehicles (VECV), a joint venture between Volvo Group and Eicher Motors, announced an investment of Rs 5.44 billion to produce and assemble Volvo Group’s 12-speed Automated Manual Transmission (AMT). The greenfield facility will be set up at Vikram Udyogpuri Integrated Industrial Township near Ujjain, Madhya Pradesh, and will cater to India and select Asia-Oceania markets.

This investment marks a new milestone in the 18-year VECV-Volvo collaboration, which has already made VECV a global hub for Volvo Group’s 5 & 8 Litre (MDEP) engines since 2013, reinforcing the Make in India for the World vision.

Sofia Frandberg, Chairperson, VECV and Senior Leader, Volvo Group, said, "This investment leverages VECV’s technical and industrial capabilities built over 18 years, demonstrating leadership in delivering future-ready solutions for the evolving commercial vehicle market."

Siddhartha Lal, Chairman, Eicher Motors, added, "The new AMT production facility reflects the trust and technical competence built over our JV’s journey, marking another step in our vision to modernize commercial transportation in India and emerging markets."

Vinod Aggarwal, MD & CEO, VECV, highlighted, "The AMT will provide Indian CV drivers with reduced fatigue, improved fuel efficiency, higher productivity, and uptime. The factory aligns with Volvo Group global standards and supports the Government of India’s Make in India initiative."

The facility will initially produce up to 40,000 AMTs per year, with production and local content gradually scaled up in line with Volvo Group’s global quality standards.

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