Industrial Investment
VECV to Invest ₹544 Crore in Greenfield AMT Plant at Vikram Udyogpuri
VE Commercial Vehicles (VECV), a Joint Venture between Volvo Group and Eicher Motors, announced an investment of ₹544 crores (about 576 million Swedish Krona) for production and final assembly of the Volvo Group's 12-speed Automated Manual Transmission (AMT). The greenfield factory will be established at Vikram Udyogpuri Integrated Industrial Township, near Ujjain, Madhya Pradesh.
| Investment amount | ₹544 crore (576 million Swedish Krona) |
|---|---|
| Project location | Vikram Udyogpuri Integrated Industrial Township, Ujjain, Madhya Pradesh |
| Project type | Greenfield factory for Volvo 12-speed Automated Manual Transmission (AMT) |
| Initial capacity | 40,000 units per annum |
| Export destination | Nearly 90% to Volvo Group; 10% for Eicher Heavy Duty trucks in India |
| Markets served | India and select Asia-Oceania markets |
| Announcement date | October 8, 2025 |
| Partner companies | VE Commercial Vehicles (joint venture of Volvo Group and Eicher Motors) |
What Was Announced
VE Commercial Vehicles (VECV), a Joint Venture between Volvo Group and Eicher Motors, announced on October 8, 2025, an investment of ₹544 crores for the production and final assembly of the Volvo Group's 12-speed Automated Manual Transmission (AMT). The company announced that it will set up the greenfield facility at Vikram Udyogpuri Integrated Industrial Township near Ujjain, Madhya Pradesh.
Who Decided
VE Commercial Limited is a joint venture between Eicher Motors Ltd and Volvo Group. Sofia Frandberg, Chairperson of VE Commercial Vehicles and Senior Leader at Volvo Group, and Siddhartha Lal, Chairman of Eicher Motors Limited, led the announcement. Jens Holtinger, Executive Vice President Group Trucks Technology and Chief Technology Officer, Volvo Group, and Vinod Aggarwal, MD & CEO, VE Commercial Vehicles, provided executive support.
Scale and Capacity
The facility will initially have a capacity of 40,000 units per annum. The company said that it has future plans to increase production and local content over time. The company will export nearly 90% of the AMT units produced to the Volvo Group, with the remaining production used to power Eicher Heavy Duty Trucks in India.
Strategic Significance
The investment in AMT production is yet another milestone in the 18-year-old successful VECV JV between the Volvo Group and Eicher Motors. As the global manufacturing hub for Volvo Group's 5 & 8 Liter (MDEP) engines since 2013, VECV's Pithampur factory has been a pioneer in Making in India for the World. The project aims to strengthen India's role as a global manufacturing base for advanced commercial vehicle technology and to align the efforts with the Make in India initiative.
Technology and Benefits
The Volvo Group's 12-speed AMT has been globally proven to reduce driver fatigue and improve fuel economy, productivity and Uptime in demanding operations. As the Indian commercial vehicle industry moves towards higher capacity vehicles, Eicher truck customers and drivers will have access to Volvo Group's globally leading AMT, which is proven to reduce driver fatigue and improve fuel economy, productivity and Uptime in demanding operations.
About Vikram Udyogpuri
Integrated Industrial Township Vikram Udyogpuri (IIT-VUL), developed over 1,100 acres in Ujjain, is a key DMIC project driving the Pithampur-Dhar-Mhow Investment Region. Currently, around 58 industries have secured land in Vikram Udyogpuri, with over 15 of them already in the trial and production phase, and these industries have proposed investments totaling over INR 5000 crore.
Sources
- VE Commercial Vehicles Announces Plans to Manufacture Volvo Group's Industry-Leading Automated Manual Transmissions
- Eicher Motors' VECV to Invest ₹544 Cr in New Volvo AMT Plant in India
- VECV to Invest ₹544 Crore in New Automated Manual Transmissions Plant
- VECV to Build 12-Speed AMT Plant in Madhya Pradesh
- Integrated Industrial Township Vikram Udyogpuri