Eicher Group Venture To Double Its Capacity

[cooldhaya]

NEW DELHI: VE Commercial Vehicles, a 50:50 joint venture between Eicher Motors and Sweden's Volvo group, on Monday said it was looking at Southeast Asian nations for exports.

The company also announced a tie-up with asset finance company Magma Fincorp for financing Eicher-branded trucks and buses.

Addressing a press conference here, VE Commercial Vehicles Managing Director and CEO Siddhartha Lal said: “Currently we have a capacity to produce 4,000 units of Eicher vehicles a month, but it is going to fall short very soon. So we will be enhancing the capacity to 7,000-8,000 units a month in the next three years. We will utilise this capacity expansion to explore new export markets, particularly in Southeast Asia. We are also looking at Africa as potential market.”

The company is undertaking a Rs. 500-crore expansion programme to enhance its capacity at its existing Pithampur plant in Madhya Pradesh. “After the downturn, we expect the auto industry to be in relatively good position in the next two to three years,” he said, adding that in the first two months of 2010, the company sold about 6,000 units of Eicher trucks and buses as against 1,500 units in the year-ago period.

Vehicle financing

Magma Fincorp Vice-Chairman and Managing Director Sanjay Chamria said “Depending on customers' profile, we will finance between 75 per cent and 90 per cent of the on-road vehicle price at interest rates ranging between 9.5 per cent and 13.5 per cent through our 153 branches across India.”

Source:Hindu

 

[RSM]

“After the downturn, we expect the auto industry to be in relatively good position in the next two to three years,” he said, adding that in the first two months of 2010, the company sold about 6,000 units of Eicher trucks and buses as against 1,500 units in the year-ago period.

Auto downturn in India is gone. Its boooming and so all auto majors are launching vehicle after vehicle.

 

[cooldhaya]

Yes that is what he has also mentioned RSM in the same period last year they have sold only 1500 units but it has crossed 6000 units now this time!!

 

[visran]

Re: Eicher group venture to double capacity!

VE Commercial Vehicles has received an order of 1,019 units of its Eicher 20.15 BS III bus chassis from the Gujarat State Road Transport Corporation. The Corporation already uses Eicher buses on inter-city and rural routes. The company’s bus range is from 15 to 65-seater vehicles. Eicher’s bus brands are Skyline and Starline and also chassis for customers to build buses as per their need. While Skyline is a premium offering, Starline has been positioned as a value-for-money product.

Eicher claims a share of 38 percent in the 7-12 tonne category and 30 percent share in 5-12 tonne trucks segment. It recently launched a 14.5 tonne GVW truck. In the truck segment, the company says it has gained marketshare with its ‘VE’ series of fuel efficient heavy duty trucks in the 5 to 14 tonne segment. VECV sold 4,064 units of trucks and buses in June and exported 297 units.

 

[visran]

Eicher Motors signs strategic joint venture with Polaris Industries

Eicher Motors has signed a strategic joint venture agreement with US based powersports major, Polaris Industries, to set up a greenfield project in the automotive sector.

The definitive agreement, signed between Siddhartha Lal, MD & CEO, Eicher Motors and Scott W Wine, CEO, Polaris Industries envisages the creation of a 50:50 joint venture company.

The joint venture company will design, develop, manufacture and sell a full new range of personal vehicles suitable for India and other emerging markets. The manufacturing facility will be located in India and the joint venture partners are currently evaluating locations to set up the facility, with production expected to start in 2015.

Under the collaboration, the joint venture company will be governed by a board with equal representation from both the companies. The overall investment in the joint venture company over a three year period will be approximately Rs 250 crores.

"The joint venture company brings together Eicher's expertise in frugal engineering, lean business model and in-depth understanding of emerging markets with product development capabilities," said Siddhartha Lal, Managing Director & CEO, Eicher Motors.

Currently, we are present in the commercial vehicle and motorcycle categories. The collaboration with Polaris Industries Inc will allow us to enter into a new vehicle segment, Lal said.

"This agreement reinforces Polaris' position as a global leader, instantly expanding our presence in India and our access to additional emerging markets around the globe." said Scott W Wine, CEO, Polaris Industries.

Eicher Motors signs strategic joint venture with Polaris Industries - The Economic Times

 

[visran]

After commercial vehicles and motorcycles, Eicher Motors is now going to enter the personal vehicle segment.the products from the JV “will not mirror any existing product from Eicher or Polaris” will be very interesting to see which segment of the passenger vehicle industry they plan to enter with the new JV.

 

[visran]

Mod's can we have a seperate thread for this Eicher Polaris JV as this piece of news is about them entering the personal vehicle segment.

 

[visran]

Volvo-Eicher opens new dealership in Pune.

Volvo-Eicher is all set to increase its spread and has just showcased three of its latest products in Pune. The Skyline bus range is VE’s premium product offering delivering superior aesthetics and seating comfort. The buses will now be available in 12 ton and 15 ton platforms and are all set to redefine the way medium and heavy duty buses are perceived. The product aims to offer a big bus advantage at a lower cost of ownership. The Skyline buses with seating capacity of 58+1 and 65+1 come placed on the Eicher 20.15 chassis platforms and are powered by a 147 PS BSIII diesel engine. The buses with their contemporary styling and optimized passenger comfort are poised to shift preference from customized bus fabrication to fully built ready to use heavy buses in the country.

Also displayed was the Eicher 11.14, a highly fuel efficient 14.5 tonnes GVW (Gross Vehicle Weight) truck. Providing enhanced benefit to the 9-9.5 ton payload customers with its modern looks, and a host of value added features. And finally taking up the most space in the parking lot was the Eicher Terra 25, hailed by VE as the toughest tipper in its segment. Promising better uptime, better lugging power, stronger aggregates and the ability to do more number of trips, the tipper is ideally suited for usage segments like roadwork, construction, crushers etc.

And that’s not all, EV also opened a brand new dealership in Pune which will display the above mentioned products. Talwar Auto who have opened the dealership have been associated with the brand since the very inception of the Eicher Group. Talwar Auto will set up three outlets in Pune located at Tatawade, Akurdi and Chakan of which Tatawade and Akurdi would be the sales and service outlets with Chakan being a dedicated workshop.

 

[visran]

Volvo Group appoints Philippe Divry as new Managing Director for Volvo India The Volvo Group, one of the world’s leading manufacturers of trucks and buses, has announced the appointment of Philippe Divry as the new Managing Director of Volvo India Pvt. Ltd, and Senior Vice President, Truck Joint Ventures India, Volvo Group. Philippe Divry, 47, has over two decades of experience in the commercial vehicles and automotive industries, both at Renault Trucks and in the Volvo Group. He has a background in Operations and Project Management, and was head of Volvo Powertrain France from 2003 to 2008. He also held significant positions in Business Development and Strategic Planning, and was Head of Global Product and Marketing for Volvo Bus Corporation in Sweden since 2009. He has been part of significant cooperation with international partners and has exercised responsibilities as board member in companies such as Prevost Cars in North America, Sunwin Bus Corporation (China), and Volvo Logistics (Sweden).
As Managing Director for Volvo India Pvt. Ltd (VIPL), one of the three legal entities of the Volvo Group in India besides Volvo Buses India and VE Commercial Vehicles (VECV), Divry will oversee the resourcing and optimization of the Volvo Group’s 4000-plus workforce in India and support the ambitious growth plans of the group’s different business areas and functions. In this role, he will be the statutory head of the Volvo Group organization in India. A Senior Vice President at Group level, he is the highest ranking executive of the Volvo Group ever positioned in India. Divry also joins as a Board Member of the Volvo Group’s joint venture company, VE Commercial Vehicles (VECV), which comprises the entire Eicher Motors truck and bus operations and the distribution of the Volvo Trucks vehicles. He will therefore be responsible for the overall performance of the truck business in India.

In addition to this, Divry will play a key role in interfacing between the Volvo Group Truck organizations such as Group Trucks Technology and Group Trucks Operations and their relations with the Volvo Group’s joint venture companies such as VECV, especially in areas such as business development, synergy projects and know-how transfer. The appointment follows the launch of Volvo Group’s new organization earlier in 2012, when it restructured its global trucks business and created a new division, Truck Joint Ventures. It focuses on the two biggest markets of the world, India and China, where the Volvo Group has significant partnerships. This division is led by Pär Östberg, Executive Vice President and a member of the Volvo Group’s Executive Team. Divry will be based in Bangalore, India and will report directly to Pär Östberg.

“India is in an exciting growth phase with growing prosperity and an increasing focus on investing for the future through infrastructure. The Volvo Group recognizes India as one of the strategic markets for the future and is committed to develop its operations and deliver increased customer satisfaction here. Nearly half of the Volvo Group Executive Team is part of the new Board of Directors for Volvo India Pvt. Ltd., a sign of our commitment to India”, said Pär Östberg, Executive Vice President, Truck Joint Ventures, Volvo Group.

“India is both the second-biggest Trucks market, where we have high ambitions, and a global hub from which we can export products and services. We have a strong willingness to increase our market participation here as our strategy is well in place, and we have a very good partnership with Eicher Motors. My appointment reflects the long-term interest Volvo Group sees here, despite the short term turbulence in the India economy. I am privileged to undertake this responsibility of maintaining and deepening our commitment to India”, said Philippe Divry.

Volvo Group appoints Philippe Divry as new Managing Director for Volvo India | WheelsUnplugged

 

[visran]

VE Commercial Vehicles to invest Rs 1,000 cr by 2013 to expand business


VE Commercial Vehicles Ltd today said it will invest Rs 1,000 crore by 2013 on various activities, including expansion of engine production capacity, launch new products and enhancing R&D.

"We have set a capex of Rs 1,000 crore for 2012 and 2013. Our investment plans are on track and there is no downturn effect on it," VECV Managing Director Siddhartha Lal told reporters on the sidelines of SIAM annual convention here.

The investment will go into various areas, including ramping up engine production capacities, enhancing R&D infrastructure, developing new products and strengthening distribution and after sales network, he added.

The firm has a capacity to produce 60,000 engines a year. It is setting up a new plant to roll out one lakh engines, which is based on Volvo technology, every year.

The new plant will be commissioned by the middle of next year, Lal added.

Talking about new products he said: "We have launched a 14 tonne truck in this fiscal. The next new product will come by the end of 2013 and in between we will have refreshes and variants of our existing products."

VEVC is a 50-50 joint venture between the Volvo Group and Eicher Motors Ltd. Apart from manufacturing and selling of Eicher branded trucks and buses, the company is also responsible for sales and distribution business of Volvo trucks within India.

VE Commercial Vehicles to invest Rs 1,000 cr by 2013 to expand business - The Economic Times

 

[visran]

Volvo to set up component supplier base for its engine plant in India

Swedish commercial vehicle major Volvo is in the process of setting up a strong components supplier base in India for its upcoming engine plant in Madhya Pradesh.

This is part of Volvo’s strategy to source more components from India for its global operations. The engines manufactured in India will house a sizeable part of locally sourced components and the same will be exported to Volvo’s other vehicle manufacturing units across the world.

The engines for Volvo will be produced at the powertrain facility, which is being built by VE Commercial Vehicles (VECV), a 50:50 joint venture between Volvo Group and Eicher, at Pithampur in Madhya Pradesh.

Talking to Autocar Professional, Vinod Aggarwal, chief executive officer of VECV (pictured), said: “When we are making engines here. We should have a component supplier base. Engines will be a major area where we will have a major localisation.”

Olof Persson, president and chief executive officer of Volvo Group, while making an announcement on investments in India a week ago in Bangalore, said, “When we are having major operations in India, localisation is important. We are working and we have been working on this before. Now together with Eicher, we can accelerate the process of finding a supplier base.” But he declined to provide details over the percentage of localisation in the engines to be manufactured in the country.

He said the engine plant, which will have a capacity to produce 100,000 units of engines per annum, will be capable of exporting 30 percent of its production to Volvo’s other vehicle assembly units across the world by 2016.

According to sources close to the development, VECV has already initiated talks with various auto component manufacturers in Karnataka and northern parts of the country to source components for its engines to be manufactured in the upcoming Pithampur plant.

The upcoming powertrain facility will be a global hub for meeting the requirements of Volvo for medium duty automotive engines in the category of five-and eight-litre engines. The Euro 6-complaint diesel based engines to be produced at the Pithampur plant will be supplied to Volvo Europe and the same platform will be adapted to Euro 3 and 4 engine technologies for VECV requirements.

The engine assembly plant will have 39 percent automation level. Currently the plant construction work is underway. The installation of complete equipments in the plant is scheduled to complete in December 2012 and the production is expected to commence from July next year.

Autocar Professional

 

[visran]

VECV to invest Rs 1,200 crore on expansion, new products by 2014

VE Commercial Vehicles Ltd (VECV), a joint venture between Sweden's Volvo Group and homegrown Eicher Motors, will invest Rs 1,200 crore by 2014 for expanding production capacity and developing new products.

In the meantime, the Indian partner will be launching Eicher branded trucks, developed using technology of the Swedish firm by the end of this year.

"This year our production capacity of trucks and buses will be 6,500 units per month, up from 5,500 units last year. Our aim is to take it up to 8,000 units per month by 2015," VECV Chief Executive Officer Vinod Aggarwal told PTI.

He said the company has "an aspirational" target of achieving an annual capacity of 1,00,000 units by 2015 but that would depend on market demand. The company is not looking for a fresh location and the planned expansion would be carried out at its existing plant at PithampurBSE 4.77 % in Madhya Pradesh.

When asked about the investment for the expansion, Aggarwal said, "From the beginning of the JV till 2012-end the company has invested Rs 1,300 crore and we will invest another Rs 1,200 crore on ongoing projects like engine plant, bus body plant, new products and further capacity increase in 2013 and 2014 to meet the requirement for 2015."

VECV began operations in July 2008 and its business includes the complete range of Eicher trucks and buses, VE Powertrain, Eicher's components and engineering design services businesses as well as the sales and distribution business of Volvo trucks within India.

Commenting on the progress of the new engine plant at Pithampur, Aggarwal: "It will become operational by July this year with an initial capacity of 25,000 units per annum. When fully mature by 2015-16, the plant will have a total capacity to produce 1,00,000 units per annum."

Apart from meeting its domestic requirement, the plant will also export medium-duty automotive engine of five and eight-litre capacities to Volvo.

About new products, Aggarwal said Eicher branded trucks using Volvo technology in cabin, engine and other drive line would be launched by this year.

"It will be for both medium and heavy duty trucks," he added.

VECV to invest Rs 1,200 crore on expansion, new products by 2014 - The Economic Times