VECV announces a ₹544 crore investment for a new 12-speed Automated Manual Transmission (AMT) factory in Madhya Pradesh boosting India’s auto tech manufacturing.
UUJAIN, Madhya Pradesh – In a significant move for India’s automotive sector VE Commercial Vehicles (VECV) the joint venture between Sweden’s Volvo Group and India’s Eicher Motors has announced a major investment of ₹544 crore to establish a new factory for advanced transmission systems in Madhya Pradesh.
The new plant, to be located in the Vikram Udyogpuri Integrated Industrial Township near Ujjain, will specialize in manufacturing sophisticated 12-speed Automated Manual Transmission (AMT) systems. This investment marks a key step in bringing the production of high-value automotive core technologies to India.
Deepening a Proven Global Partnership
This new facility represents a strategic evolution in the 18-year partnership between Volvo and Eicher. It moves beyond vehicle assembly to the local manufacturing of complex drivetrain components, combining Volvo’s global engineering prowess with Eicher’s deep understanding of the Indian market.
Sofia Frandberg, Chairperson of VECV, stated that the investment reinforces the strong trust between the partner companies and underscores a shared commitment to innovation and sustainability. The plant will be designed to meet Volvo Group’s stringent global quality benchmarks, ensuring that transmissions made in India can integrate directly into international supply chains.
Why AMT Technology is a Game-Changer
The focus on 12-speed AMT systems addresses a critical need in the modern commercial vehicle industry. For fleet operators and drivers, AMT technology offers compelling advantages:
- Enhanced Fuel Efficiency: The system automates gear shifts for optimal engine performance, reducing fuel consumption.
- Reduced Driver Fatigue: By eliminating the need for constant manual clutching and shifting, AMT makes long-haul driving less strenuous.
- Increased Productivity: Smother and more consistent gear changes lead to better vehicle upkeep and higher operational efficiency.
Vinod Aggarwal, Managing Director and CEO of VECV, highlighted that as India graduates to higher-capacity trucks and buses, the demand for such advanced drivetrains is set to surge. This plant will ensure Indian manufacturers and fleet owners have direct access to globally proven, efficient technology.
Aligning with National Vision and Regional Growth
The project is a substantial boost to the Government of India’s ‘Make in India’ and ‘Atmanirbhar Bharat’ (Self-Reliant India) initiatives. With an initial annual production capacity of 40,000 units, the plant has room for scaling up to meet both domestic demand and export opportunities.
Furthermore, the establishment of this high-tech facility is expected to generate significant skilled employment and stimulate the growth of ancillary industries in the Madhya Pradesh region, positioning it as a new hub for advanced automotive manufacturing.
Frequently Asked Questions (FAQ) About VECV’s New AMT Plant.
1. What is VECV?
VE Commercial Vehicles (VECV) is a joint venture between the Swedish Volvo Group and Indian Eicher Motors. It manufactures commercial vehicles like trucks and buses, as well as engines.
2. How much is being invested and where?
VECV is investing ₹544 crore to build a new factory in Vikram Udyogpuri, near Ujjain, Madhya Pradesh.
3. What will the new plant produce?
The factory will manufacture 12-speed Automated Manual Transmission (AMT) systems for commercial vehicles.
4. What is an AMT, and why is it important?
An Automated Manual Transmission (AMT) is a gearbox that automates the clutch and shifting actions of a manual transmission. It is important because it improves fuel efficiency, reduces driver fatigue, and enhances overall vehicle performance, which is crucial for the logistics and transport industry.
5. What is the planned capacity of the plant?
The facility will have an initial production capacity of 40,000 units per year, with plans to scale up based on market demand.
6. How does this align with government initiatives?
This investment directly supports the ‘Make in India’ and ‘Atmanirbhar Bharat’ visions by localizing the production of a critical and complex automotive component, reducing import dependence and boosting India’s manufacturing credentials.
7. What are the expected benefits for the region?
The project is expected to create numerous direct and indirect jobs, boost local ancillary industries, and position the Madhya Pradesh region as a center for high-value automotive technology manufacturing.
