VE Commercial Vehicles (VECV) has today said that it plans to invest Rs 288 crore in its Pithampur plant, in Madhya Pradesh. This investment will aid the production and final assembly of the Volvo group's new global medium-duty engine platform.
"This investment by VECV in its Pithampur plant gives the Volvo group a complete facility in India for manufacturing and assembling the new medium-duty engine which will be introduced in the Volvo group's trucks and buses worldwide in the next few years. These engines will also be used for Eicher's range of heavy duty commercial vehicles," said Par Ostberg, Chairman, VE Commercial Vehicles.
This investment will make it possible for the group to locate most of its production of medium-duty engines at Pithampur. The new investment will result in an annual production capacity of an additional 85,000 engines. The plant has a capacity to produce 40,000 engines per year. The production facility will conduct final assembly of engines for India and all of Volvo group's global markets with Euro 3 and Euro 4 emission norms.