Swedish truck manufacturer Volvo Truck India will invest 28.8 billion rupees (about 4.2 billion yuan) in a new engine plant.
The Volvo Truck India joint venture company named Volvo Eicher Commercial Vehicles was established in 2008. The new engine plant will be located in Pithampur, Madhya Pradesh, India. After the plant is completed, it will start production of 5-liter and 8-liter engines for medium trucks and buses from 2012. In addition to supplying local assembly plants in India, these products will also be exported to other countries in the world.
"The Volvo Eicher's investment means that Volvo Trucks will fully own its own engine assembly plant in India," said Par Ostberg, vice chairman of Volvo Eicher. "The engine produced by the new engine plant will be used in addition to the trucks that Volvo will launch in the next few years." In addition to bus models, it will also be used on Eicher's heavy trucks."
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