Eicher to build up capacity before Volvo JV

Printer Print Email Email
Pune: Ahead of its joint venture (JV) for trucks with Swedish major Volvo, Eicher Motors is mulling a major capacity expansion, even as it plans to retain its badge on products that will be manufactured by the JV.

"It is possible for us to reach 60,000 vehicle sales annually by 2010, when we will need over 200 dealers," said A Ramasubramanian, CEO, Eicher Motors Commercial Vehicles.

"Our revenue is growing at seven to nine percent, having sold over 28,000 vehicles last year," he added. The bus and truck manufacturer has invested Rs 1,000 crore this fiscal year at its Pithampur plant, near Indore in Madhya Pradesh.

Eicher Motors and Volvo had announced their decision to form a JV in December. The JV is expected to be formed shortly and will be located at Pithampur, mainly for making trucks. However, the buses manufactured in the JV will be branded as Eicher products while those by the Bangalore based Volvo Busbody Technologies are named as Volvo.

This distinction in badging will help, since Eicher will then be taking on domestic competition, from Tata Motors and Ashok Leyland, with a lower technology and hence, a lower priced product. Once the JV is formed, Eicher is expected to offer support service to Volvo buses, through its wider sales and service network, said Eicher officials.

SPOTLIGHT
Startup City
With cities growing rapidly and infrastructure not keeping pace, the daunting work com..
Enterprise IT
Taking on streaming giants like Netflix and Hulu, Walt Disney Co. has announced it will ..
Travel
Imagine life being a romantic Bollywood song of the 90's. All those exotic frames punched into one..
Business
Automobile major MG Motors India on Wednesday said that it plans to manufacture electric vehicle E..
Entertainment
Actor Dhanush, whose last Hindi release was R. Balkis "Shamitabh", may be working in another H..
Technology
To ensure uninterrupted functioning of the app in areas of low networks, Facebook-owned..
Career
Les Roches Global Hospitality Education, a multi-national hospitality management institute, a..
Finance
India's tea exports increased by 11.5 per cent to 17.93 million kgs in April this year aga..
Gadgets
Yamaha Music India has launched its first Indian keyboard PSR I500 under the 'Make in India' initi..