Oct 10: Homegrown automotive major Eicher Motors, which has a joint venture with Volvo for trucks and buses (VECV), has said that it is lining up plans towards establishing a new Greenfield truck manufacturing plant. The plant, which will come up on an investment of Rs 4 billion, will be set up in Bhopal.
Going by the reports that spoke of this new plan by Eicher Motors, the construction works for the plant will begin soon. The reports added that the Madhya Pradesh government has already allotted land for the company.
Eicher has said that with an investment of over Rs 4 billion, the company plans to open the plant in 18 months. The plant is expected to have a capacity to manufacture 40,000 trucks. The plant at Pithampur, near Indore, has a capacity of 90,000 trucks, which together makes a huge number.
It is been 10 years since Volvo Group and Eicher Motors formed a partnership in India. The latest news is that the new plan would commemorate their ten-year partnership.
According to reports quoting Hkan Karlsson, President, Volvo Group Trucks Asia, and JVs and Chairman, VECV, the announcement of the upcoming plant has come about because they are confident about their growth potential in the market. He also added that VECV has a competitive advantage over its rivals and can make use of the opportunities in the Indian market.