Commemorating successful completion of five years of partnership between Volvo Group and Eicher Motors in, VE Commercial Vehicles Limited announced start of commercial production at the technologically most advanced engine manufacturing plant in India in July 2013. The plant has been set up at Pithampur, Madhya Pradesh, India with an initial capacity of 25,000 units per annum in Phase 1 at an investment of Rs 375 crores. The capacity will increase step by step to 100,000 units per annum as per the market requirements with an additional investment of around Rs 125 crores.
The engine facility will be a global hub for meeting the medium-duty automotive engine requirements of Volvo Group globally for five- and eight-litre engines. The Euro 6-compliant diesel base engines will be supplied to Volvo Group plant in Venissieux, France where these engines will be assembled for the Volvo Group Euro 6 requirements. The same platform will be adapted to Euro 3 and 4 engine (BS3/BS4) technologies to meet the VECV requirements and other Volvo Group requirements for this type of engines in Asia.