VE Commercial Vehicles to Manufacture Volvo 12-Speed AMT in India for Asia-Oceania Markets

VE Commercial Vehicles (VECV), a joint venture between Volvo Group and Eicher Motors Limited, announced an investment of ₹544 crore for producing Volvo Group’s globally acclaimed 12-speed Automated Manual Transmission (AMT) in India. The announcement was made on October 8, 2025, aligning with the Make in India initiative and expanding VECV’s global manufacturing capabilities.

Volvo’s Industry-Leading 12-Speed AMT to be Made in India

The new 12-speed AMT, proven to enhance fuel economy, reduce driver fatigue, and boost uptime, will be produced and assembled at a greenfield facility in Vikram Udyogpuri Integrated Industrial Township, near Ujjain, Madhya Pradesh. T

he investment, equivalent to about 576 million Swedish Krona, will enable VECV to serve both the Indian and the Asia-Oceania markets. Approximately 90% of the units produced will be exported or supplied to Volvo, while the rest will support Eicher’s heavy-duty truck range.

Strengthening an 18-Year Volvo-Eicher Partnership

This initiative marks a new milestone in the 18-year collaboration between Volvo Group and Eicher Motors. Since 2013, VECV’s Pithampur facility has served as a global hub for Volvo’s 5-litre and 8-litre MDEP engines. 

The new AMT plant builds on that legacy by expanding local manufacturing of advanced automotive technology to global standards. The factory will start with a capacity of up to 40,000 units annually, with localisation ramping up gradually.

Read More: Popular Vehicles and Services to Acquire RKS Motor for ₹93 Crore; Share Price in Focus!

Global Collaboration for Technological Excellence

Siddhartha Lal, Chairman of Eicher Motors, noted that the new AMT project demonstrates the trust and technical expertise built through years of partnership. Jens Holtinger, Executive Vice President, Group Trucks Technology at Volvo Group, added that the venture exemplifies Volvo’s commitment to efficient, partnership-based manufacturing supply chains. 

Vinod Aggarwal, MD & CEO of VECV, emphasised that the facility supports India’s Make in India vision while delivering world-class products for both domestic and international customers.

Conclusion

VE Commercial Vehicles’ ₹544 crore investment in producing Volvo’s 12-speed AMT marks a major step toward advancing India’s commercial vehicle manufacturing capabilities. By aligning with global standards and leveraging long-standing Volvo-Eicher collaboration, the new facility positions India as a key hub for advanced transmission systems in the Asia-Oceania region.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities are subject to market risks. Read all related documents carefully before investing.