VECV to Increase Indore Plant Capacity up to 7,000 Units
Published On Jul 05, 2016
Joint Venture of Eicher Motors India and Volvo, Volvo Eicher Commercial Vehicles (VECV) India has become one of the top automakers in India and has grown double digits during June 2016 which is tandem with CV industry growth. Riding high on the success and good market prediction this year, the company is planning to invest INR 400 crore during financial year 2016-17. The money would be used for the development of new products, plant capacity expansion and for bringing new technology into the trucks.
Following the same path, VECV has decided to increase the production capacity of its Indore plant up to 7,000 units. Currently, the facility is 100 percent operational with production capacity of 5,500 units. Confirming the expansion, VECV CEO Vinod Aggarwal told Deccan Herald, “With regard to the growing demand, we are taking steps to increase the plant’s capacity to 7,000 units by adding a new assembly line, which will be realised by this year-end.”
He further added, “In terms of expanding our product spread, we are bullish on all segments—light and medium trucks, heavy duty trucks, and buses. We have already introduced three new models in the last three months. The industry is growing very well beyond recession, after three years of down-cycle. Also, the push given by the government in the area of infrastructure, and positive sentiments owing to an expected good monsoon, economic growth, spurt in ecommerce, and the 7th Pay Commission, among others, have improved consumption. Demand has also been led by replacement of vehicles in the marketplace.”