Volvo-Eicher Commercial Vehicles, a joint venture (JV) between the Volvo Group and Eicher Motors plans to invest about Rs 2,500 crore by 2013.The JV is setting up an engine manufacturing unit on a 12-acre plot in Pithampur, Madhya Pradesh. The proposed unit will make 100,000 medium-duty five- and eight-litre automotive engines annually and will be operational by mid-2013.

Meanwhile, Eicher is setting up a bus body building plant in Dhar, Madhya Pradesh, with an investment of Rs 125 crore in the first phase. Volvo-Eicher is also increasing capacity at its component plant in Dewas, Madhya Pradesh.

The JV company makes Eicher trucks and buses, VE power train as well as Eicher's components. It also sells and distributes Volvo trucks within the country.