VE Commercial Vehicles (VECV), a Volvo Group and Eicher Motors joint venture, is set to increase prices of trucks with “immediate effect”, a senior officer indicated here on Thursday.
The current economic scenario, depreciation of the rupee and increased costs due to inflation have forced the company to increase the price tag, A. K. Birla, Executive Vice-President, Sales, Marketing and Aftermarket, VECV, told presspersons here.
About the engine manufacturing plant at Pithampur near Indore, he said the company had invested Rs 375 crore for establishing a manufacturing capacity of 25,000 engines, which, with another investment of Rs 125 crore, would be scalable to a total capacity of one lakh engines.
Production at this plant commenced a month ago, Birla said, adding the entire production would be exported until next year when these engines would begin to be used in Volvo and Eicher vehicles as well.
The new engines to be manufactured at Pithampur will conform to the requisite Euro norms for vehicles in India and abroad.
Birla also announced setting up of the first company-owned, company-operated (COCO) Eicher-branded dealership in Gujarat at Gandhidham, which is one of the top three markets for the company in India.