Mumbai, Oct. 9 -- VE Commercial Vehicles (VECV), a joint venture between Volvo Group and Eicher Motors, is set to invest INR 5.44 billion towards production and final assembly of the VolvoGroup's globally proven 12-speed Automated Manual Transmission (AMT).

The company is establishing a new greenfield factory at Vikram Udyogpuri Integrated Industrial Township, near Ujjain, Madhya Pradesh.The new facility will have an initial capacity to produce 40,000 units per annum, with production and local content to be gradually ramped up. The engines will benefit Eicher Heavy Duty truck customers in India and Volvo Group in India, along with plans to export to select markets in Asia-Oceania region.

The development builds upon the 18-year-old allia...