VECV Plans ₹544 Cr Investment for Volvo AMT Hub in MP
Volvo Eicher Commercial Vehicles (VECV), a joint venture between Eicher Motors Ltd. and Sweden’s Volvo Group, has announced an investment of ₹544 crore to establish a new Automated Manual Transmission (AMT) manufacturing facility in Madhya Pradesh. The move marks a major step forward in India’s automotive manufacturing landscape. It aligns with the ‘Make in India’ initiative, further positioning the country as a global hub for advanced commercial vehicle technologies.
Strengthening India’s Manufacturing Capabilities
The new facility represents a milestone in the 18-year-long collaboration between Volvo Group and Eicher Motors. Since its inception in 2008, VECV has worked to bring world-class transport technology to India while expanding its export footprint. The AMT plant will serve as a global production hub for the Volvo Group, supporting both domestic and international markets.
Sofia Frandberg, Chairperson of VECV and Senior Leader at Volvo Group, expressed pride in the partnership’s progress:
“This investment represents another win-win synergy with the Volvo Group and leverages the strong technical and industrial capabilities built over the past 18 years. VECV has demonstrated its leadership by introducing future-ready solutions for a rapidly transforming industry.”
A Shared Vision of Modernisation and Trust
The ₹544 crore investment underscores the strength of the Volvo–Eicher partnership and their shared vision for modernising transport in India and other emerging markets.
Siddhartha Lal, Chairman of Eicher Motors Ltd., highlighted the importance of long-term collaboration:
“The AMT investment is built on a foundation of trust and shared capability developed through years of collaboration. It reinforces our vision to be a leading commercial vehicle player in India and other emerging markets by driving modernisation in transport.”
The new facility is set to advance India’s position in next-generation drivetrain technology, offering vehicles equipped with globally recognised efficiency and performance standards.
A Boost to ‘Make in India’ and Regional Growth
The AMT plant will further strengthen the automotive manufacturing ecosystem in Madhya Pradesh, one of India’s fastest-growing industrial states. The project reflects the government’s emphasis on promoting domestic manufacturing and job creation in high-technology sectors.
Vinod Aggarwal, Managing Director and CEO of VECV, emphasised that the project will directly benefit Eicher customers across India:
“As India transitions towards higher-capacity vehicles, Eicher customers will benefit from Volvo Group’s globally proven AMT technology, which reduces driver fatigue, improves fuel efficiency, and enhances uptime. We are grateful to the Government of Madhya Pradesh for its continued support.”
Understanding AMT Technology
Automated Manual Transmission (AMT) combines the control of a manual gearbox with the convenience of an automatic transmission. It uses electronic sensors, actuators, and control systems to handle clutch operation and gear shifts without driver input.
Globally, AMT technology has been widely adopted in commercial fleets for its fuel efficiency, smoother gear transitions, and driver comfort. For India’s logistics and transport sector, AMT-equipped trucks and buses are expected to help reduce driver fatigue during long-haul operations while improving overall productivity and uptime.
Supporting India’s Shift Toward Automation and Efficiency
As India’s commercial vehicle industry evolves, there is a growing demand for higher efficiency, lower emissions, and increased automation. The VECV investment aligns with these trends and contributes to the government’s larger goals of sustainable mobility and industrial modernisation.
The new facility will not only cater to the domestic market but also serve as a strategic export base, reinforcing India’s role as a trusted global manufacturing partner for the Volvo Group.
A Step Forward for Sustainable Transport
By investing ₹544 crore in the AMT production hub, VECV is helping accelerate India’s transition toward a modern, efficient, and sustainable transport ecosystem. The technology is expected to enhance fleet reliability, lower operational costs, and support the shift toward cleaner, energy-efficient vehicles.
With this expansion, VECV continues to demonstrate its commitment to innovation, customer satisfaction, and industrial excellence. As the commercial vehicle sector embraces automation, this investment signals India’s readiness to lead the next phase of global transport evolution.