VE Commercial Vehicles (VECV), a joint venture between Volvo Group and Eicher Motors, will manufacture Volvo Group’s automated manual transmissions (AMT) in India. The company is investing ₹544 crore in a new greenfield facility at Vikram Udyogpuri Integrated Industrial Township. This initiative will serve both the Indian market and select Asia-Oceania markets, boosting VECV’s position in commercial vehicle manufacturing. About 90% of produced transmissions will be exported or sold to Volvo.
AMT Production in India
VE Commercial Vehicles (VECV) announced plans to manufacture Volvo Group’s industry-leading 12-speed automated manual transmissions (AMT) for the Indian and select Asia-Oceania markets. This marks a significant step in the company’s strategy to modernize commercial transportation.
Investment and Facility
VECV is investing ₹544 crore (576 million Swedish Krona) in a greenfield factory located at Vikram Udyogpuri Integrated Industrial Township, Madhya Pradesh. This facility will handle the production and assembly of Volvo Group’s state-of-the-art 12-speed AMT.
Strategic Alignment and Capacity
The manufacturing initiative aligns with the Government of India’s ‘Make in India’ vision and aims to enhance fuel efficiency and productivity. The new AMT facility will have an initial capacity to produce up to 40,000 units per year, with production and local content to be gradually increased.
Market Focus
The Volvo Group’s 12-speed AMT is globally proven to reduce driver fatigue and improve fuel economy. Approximately 90% of the AMT produced by VECV will be exported or sold to Volvo, with the remainder being used in Eicher Heavy Duty trucks manufactured by VECV.
Executive Commentary
Jens Holtinger, Executive Vice President Group Trucks Technology and Volvo Group Chief Technology Officer, stated that this manufacturing hub at VECV exemplifies how the Volvo Group leverages partnerships to enhance manufacturing efficiency.
Agreement Details
The agreement, effective October 8, 2025, involves a technology license arrangement between VE Commercial Vehicles Limited and Volvo Trucks Corporation, Sweden.
Source: BSE
