VE Commercial Vehicles Limited, a Volvo Group and Eicher Motors Joint Venture is setting up a bus manufacturing plant at Dhar near Madhya Pradesh – India, the company said on Wednesday.
The first phase of the plant will cost Rs 125 crore and will commence production by the second quarter of 2013, a press release from the company said. The plant will have capacity to produce 10,000 buses when fully operational.
Speaking on the occasion, Mr. Siddhartha Lal, MD, VE Commercial Vehicles Limited said, “The Indian Bus market is likely to cross 100,000 units by 2015 and demand for more contemporary, comfortable buses is on the rise. With this plant, VECV is planning new range of buses which would be contemporary on technology, aesthetics and finish serving the customer needs both in the expanding domestic and exports markets”
The new facility would have robotic processes for bus painting and will be highly mechanized to ensure high quality consistency & productivity.
VE Commercial Vehicles (VECV) said last week it recorded a 5.22% jump in total sales to 3,708 units in January, 2012. The Joint Venture sold 3,524 units in the same month last year.
Domestic sales increased to 3,551 units in January from 3,357 units in the year-ago period, an increase of 5.78%, VECV said in a statement.