Read More>> NEW DELHI: VE Commercial Vehicles (VECV), an equal joint venture between Eicher MotorsNSE -2.56 % and the Volvo Group, will invest in a new plant in Bhopal at a time when European rivals Man Trucks and Scania have exited India’s competitive freight-carrier industry.
The company is building a new 40,000-unit truck capacity with an initial investment of Rs 400 crore. The plant is aimed at enhancing VECV’s market share in the heavy-duty truck segment. Speaking to ET after the board meeting held to commemorate 10 years of the joint venture, Martin Lundstedt, the global CEO of the Volvo Group said: “We have built a strong foundation in India and we want do things consistently instead of looking at quick fixes or running behind volumes.
India is among five major home markets for Volvo, which not only serves as a key market but a base for development and export of vehicles.” All its businesses in India are making money, the Volvo CEO said. Over the last 10 years, VECV has grown at a compounded annual growth rate of 18% and the company has consistently remained profitable. VECV has so far invested about Rs 3,500 crore in the operations and at the end of the last financial year, it had generated a turnover of Rs 10,200 crore.