Volvo Eicher Commercial Vehicles plans to invest INR2.88bn ($53.41m) in the Pithampur plant in Madhya Pradesh, India.
Volvo Eicher Commercial Vehicles, which is a joint venture between Eicher Motors and Volvo, plans to develop a complete assembling and manufacturing plant which will produce medium duty engine for Volvo’s buses and trucks worldwide. The production will be ramped from 60,000 units to 160,000 units by 2016-2017.
“The driveline parts like transmisson or gears which we are manufacturibng here can be supplied to some of the Volvo group companies over a period of time.At present, we are not supplying auto parts to Volvo, but we are in talks. They are evaluating us to be their supplier for auto parts,” Vinod Aggarwal, CEO of Volvo-Eicher Commercial Vehicles said.
In 2011 the company sold more than 49,000 cars, up 25%, reporting net sales of INR49.16bn ($911.7m). During the same year Volvo also recorded market share of 9.7% for Eicher branded buses, from 6.7% in 2010.