Volvo to use India as truck stepping stone to GCC
Eicher Motors and Volvo JV to invest $205 million to expand exports
VE Commercial Vehicles (VECV), a JV between Volvo and India’s Eicher Motors will invest $205 million to turn India into a hub for exports to the Middle East, Africa, and South East Asia.
According to CEO Vinod Aggarwal demand in India has grown by 11% in the first eight months of 2011 and the company is selling up to 700 heavy trucks every month.
He told the Economic Times in India that he expects that figure to rise to “1,000 units per month soon” adding that the JV’s state-of-the-art greenfield engine plant will go into production in early 2013.
“We intend to invest around 1,000 crore ($205 million) across different divisions of VECV over the next three years,” he added. “While our annual CV capacity is 4,000 units/month - it exceeded by 500 units in March this year. We plan to ramp up this capacity to 5,000 per month by December.”