Volvo Eicher Commercial Vehicles (VECV), which is a joint venture firm between Eicher Motors and Volvo Group, is planning to invest a sum of Rs 288 crore in the company’s Pithampur facility in Madhya Pradesh. With this investment, the company is looking forward to develop a complete manufacturing facility.
A part of this investment will also be used in the development of new medium duty engines to which company wants to incorporate in the Volvo group’s upcoming trucks and busses in the global portfolio.
Speaking to the reporters, Mr. Vinod Agarwal, Chief Executive at VECV said that the firm will be ramping-up its engine production capacity to 1.60 lakh units by year 2016-17, as compared to the existing capacity of 60,000 units.
In year 2011, the company managed to register a sales figure of 49,000 vehicles with a growth of 25 per cent. The net sales of the company stood at Rs 4,916 crore. At present, the market share of the Eicher busses in its segment is about 9.7 percent.
