VECV Plans Major Investment To Increase Truck Production
This article originally appeared in the July 2018 issue of the Power Systems Research PowerTALK report.
Volvo Eicher Commercial Vehicles (VEVC), a joint venture between Swedish automaker Volvo and Eicher Motors, is planning to invest Rs.500 crores this year for business growth and aims to increase truck volumes by 50% to meet the growing demand.
PSR Analysis: VECV has been a strong player in the Light-Medium Duty segment, and has focused on value-selling and efficient premium products. We believe the demand environment looks robust at least until BSVI norms are implemented. The company is operating at optimum capacity in the existing plant, and on average VECV produces about 4500-5000 units from its plants and has clocked in 8000 units/month to meet the growing demand.
The planned investments across all areas of its business will provide further impetus on the Pro Series trucks along with new product launches to boost domestic volumes. VECV has seen growth in its export business and plans to develop a new range of light and heavy-duty buses exclusively for Middle-East and African markets. Eventually, it plans to create satellite assembly plants outside India. PSR