Report-Volvo Eicher to invest Rs 288 crore in India operations
The joint venture between Volvo, the second largest truck maker and Eicher motors is all ready to set afloat a new milestone, being back up with a whooping INR 288 crore in the company?s unit located at Pithampur, Madhya Pradesh.
The Volvo Eicher is all set to rise high backed up with a support of a whooping investment. The joint venture between Volvo, the second largest truck maker and Eicher motors is all ready to set afloat a new milestone, being back up with a whooping INR 288 crore in the company’s unit located at Pithampur, Madhya Pradesh. After thus kind of an investment, the company is now forward for a complete manufacturing unit. A section in this unit would be dedicated towards making medium duty engines that would be fit in the Volvo group of Trucks and Buses for the global use.
Reportedly quoted by VECV Chief Executive Vinod Agarwal, the brand would be ramping-up its engine production capacity to 1.60 lakh units by year 2016-17, correlated to the existing capacity of 60,000 units. Back in 2011, the company reported sales of 49,000 vehicles, a growth of 25 per cent. The net sales of the company stood at INR 4,916 crore. Currently,the market share of Eicher buses in its segment is about 9.7 per cent.
The JV would utilize the Eicher brand for light and medium (LM) commercial vehicles, and the Volvo brand would be targeted at the premium heavy commercial vehicle (HCV) segment in the country. Eicher Motor's current portfolio also consists of heavy vehicles (50 tonnes and above) which they will continue to sell.