VECV to Set Up Global AMT Production Facility in Madhya Pradesh

By Amit Jangra | Published Date : October 11, 2025

VECV to open an AMT production facility in Ujjain, boosting local manufacturing, exports and India’s role in global automotive technology.

Ujjain, Madhya Pradesh – In a significant move for the region, VE Commercial Vehicles (VECV), a joint venture between Eicher Motors and Volvo Group, is setting up a brand-new manufacturing plant at Vikram Udyogpuri, close to Ujjain city. The facility will focus on producing Automated Manual Transmissions (AMT), mainly for Volvo Trucks and export to global markets.

This isn't just about putting up another factory. It's a big move in the long-running partnership between Volvo and Eicher. For Ujjain, it might even be the beginning of something bigger—maybe a future hub for high-tech automotive work. Once the plant gets going, there’s a good chance it’ll open up local jobs and give India a stronger position when it comes to exporting modern transmission systems.

Locals and industry insiders are optimistic. “It’s encouraging to see global tech coming to smaller industrial towns like Ujjain,” said one official familiar with the project.

A Big Boost for Local Manufacturing

Table of Contents

1. A Big Boost for Local Manufacturing

2. Volvo Trucks and Eicher: A Strong 18-Year Partnership

3. Why This Matters for India

4. Leaders Speak on the Investment

5. The Road Ahead

Also Read: Big Step for Electric Truck Future in India

The upcoming facility will follow Volvo’s global standards and will start with the capacity to make 40,000 AMT units per year. Over time, VECV plans to increase both production and the use of local materials. This will not only reduce costs but also create more jobs in the region.

The project also ties in with the broader ‘Make in India’ push. It’s another example of how the country’s slowly carving out a bigger role in the global auto industry. Places like Madhya Pradesh, which weren’t always in the spotlight, are now starting to get noticed — especially for components and manufacturing.

Volvo Trucks and Eicher: A Strong 18-Year Partnership

Volvo and Eicher joined hands back in 2008 to form VECV. Since then, they’ve brought modern and fuel-efficient trucks to India and other countries. Their work together has helped improve the quality and performance of commercial vehicles across markets.

The new AMT plant is a result of their shared experience and vision for the future. It’s one more example of how Volvo and Eicher are working together to modernize the trucking industry.

Why This Matters for India

The project also ties in with the broader ‘Make in India’ push. It’s another example of how the country’s slowly carving out a bigger role in the global auto industry. Places like Madhya Pradesh, which weren’t always in the spotlight, are now starting to get noticed — especially for components and manufacturing.

By bringing Volvo’s AMT technology to India, VECV is helping to improve fuel efficiency, reduce driver fatigue and increase the uptime of trucks. These are all important as India’s highways get busier and the demand for reliable trucks keeps growing.

The plant will also support global exports, making India a key part of Volvo Group’s supply chain.

Leaders Speak on the Investment

Sofia Frandberg, Chairperson of VECV, said this investment builds on the strong relationship between Volvo and Eicher. “We have built great technical and manufacturing capabilities over the years,” she said.

Siddhartha Lal, who heads Eicher Motors, said the decision reflects where the company wants to go next. “We’re trying to bring in newer tech and raise the bar for trucking in India — this is one way to do that,” he said.

Vinod Aggarwal, Managing Director & CEO of VECV, mentioned how this technology will benefit customers. “It will help truck drivers feel less tired, improve mileage and keep trucks running longer,” he explained.

The Road Ahead

This new project is not just about one factory. It’s about pushing India forward in the world of modern trucks and high-tech vehicle components. As the global auto industry changes, investments like this help India stay ahead.

Thanks to the backing of the state government, along with help from local vendors and workers, the new plant could give the region a real boost — not just in terms of jobs, but also in know-how and future opportunities.

Related News: 

♦ Tata Motors & ThunderPlus Launch India’s New EV Charging Network

♦ Lohia Auto Festive Diwali Offer 2025: Free Gifts Worth ₹6,999

---

Frequently Asked Questions on Commercial Vehicles

How many AMT units will the plant produce annually?

Ans: The plant will start with a production capacity of 40,000 AMT units per year, with plans to scale up over time.

How does this project support the ‘Make in India’ initiative?

Ans: By manufacturing advanced vehicle components locally and increasing export capacity, the plant directly supports India’s push for self-reliant manufacturing.

What benefits will this bring to the region?

Ans: The project will create jobs, enhance technical skills, attract local suppliers and help Madhya Pradesh become a hub for advanced automotive components.

---

Join us for the latest updates on the Truck Industry -

☞  Facebook 

☞  Instagram

☞  YouTube

☞  Twitter

☞  LinkedIn

☞  Threads

Join Our WhatsApp Channel