Business & Economy

Volvo, Eicher JV to manufacture buses at Dhar in MP

NetIndian News Network

New Delhi, February 6, 2012

VE Commercial Vehicles Limited (VECV), a joint venture between the Volvo Group and Eicher Motors, is setting up a bus manufacturing plant at Dhar, near Indore in Madhya Pradesh.
The first phase of the plant will cost Rs 125 crore and will commence production by the second quarter of 2013, a press release from the company said. The plant will have capacity to produce 10,000 buses when fully operational. 
Speaking at the ground-breaking ceremony for the plant, Siddhartha Lal, MD, VE Commercial Vehicles Limited said, "The Indian bus market is likely to cross 100,000 units by 2015 and demand for more contemporary, comfortable buses is on the rise. With this plant, VECV is planning a new range of buses which would be contemporary on technology, aesthetics and finish, serving the customer needs both in the expanding domestic and exports markets."
Bertil Thoren, VECV Board member said "The state of the art plant will be another large step towards our vision of becoming a leading CV player in India and other emerging markets. It will be set up under our overriding vision of driving modernisation in the Indian commercial transportation."
The multi-model bus manufacturing plant will produce light, medium and heavy duty buses including the rear engine semi-low floor buses catering to the requirements of the school, staff, city & intercity segments. The plant will have robotic processes for bus painting and will be highly mechanized to ensure high quality consistency and productivity. A robust quality system is being institutionalised to sustain the quality supported with an in-house training centre for the blue collar workmen. 
Vinod Aggarwal, CEO, VE Commercial Vehicles Limited said, "Eicher has continued to garner impressive numbers in the Indian bus market. The year 2011 saw us improve our market share from 7% to 10% and also gain significant entry into State transport undertaking segments. The upcoming bus manufacturing plant would provide the necessary impetus to achieve our next trajectory of growth with best in class buses."