VE Commercial Vehicle, a joint venture between Volvo Group and Eicher Motors, on Monday announced that the company is setting up a new greenfield truck manufacturing plant in Bhopal, with an initial capacity of 40,000 units.

　　With an investment of Rs 400 crore, the company is planning to go on stream with this plant in the next 18 months, as per a company release.

　　At present, the company is producing 90,000 trucks from its Pithampur plant, near Indore.

　　Hakan Karlsson, President Volvo Group Trucks Asia & JVs and Chairman, VECV added, “With the announcement of setting up of a new plant at an investment of Rs 400 crore, we have full confidence in the growth potential in the Indian market and with technologically superior products, VECV is in an advantageous position to fully leverage the opportunities in the market."

　　Currently, the company is producing medium‐duty Euro VI engines for the Volvo Group at the state‐of‐the‐art manufacturing facility in Pithampur to cater to the markets of Europe and Asia.

　　VECV has witnessed an yearly average growth of over 18 per cent in last ten years with turnover of Rs 10,200 crore in 2017‐18.