Eicher Bus Body manufacturing plant to be set up

Feb 6, 2012: VE Commercial vehicles limited (Volvo Group and Eicher Motors JV) did the ground breaking ceremony of the upcoming Eicher bus manufacturing plant near Indore at Dhar, Madhya Pradesh. The plant is being set up with an investment of Rs 125 Crores in the first phase and would commence production by 2 nd quarter of 2013. The plant will have a capacity to produce 10,000 buses when fully operational.

Apart from senior VECV executives, the occasion was also graced by VECV Board members who included Mr. Siddhartha Lal, Mr. Bertil Thoren, Mr. Philippe Divry, Mr. Prateek Jalan and Mr. Raul Rai.

Speaking on the occasion, Mr. Siddhartha Lal, MD, VE Commercial Vehicles Limited said, “The Indian Bus market is likely to cross 100,000 units by 2015 and demand for more contemporary, comfortable buses is on the rise. With this plant, VECV is planning new range of buses which would be contemporary on technology, aesthetics and finish serving the customer needs both in the expanding domestic and exports markets”

Mr. Bertil Thoren, VECV Board member said “The state of the art plant will be another large step towards our vision of becoming a leading CV player in India and other emerging markets. It will be set up under our overriding vision of driving modernisation in the Indian commercial transportation.”

The multi model bus manufacturing plant would produce Light, Medium and Heavy duty buses including the rear engine semi low floor buses catering to the requirements of the school, staff, city & Intercity segments. The plant would have robotic processes for bus painting and will be highly mechanized to ensure high quality consistency & productivity. A robust quality system is being institutionalised to sustain the quality supported with an inhouse training centre for the Blue collar workmen.

Mr. Vinod Aggarwal, CEO, VE Commercial Vehicles limited said-“Eicher has continued to garner impressive numbers in the Indian bus market. The year 2011 saw us improve our market share from 7 to 10% and also gain significant entry into State transport undertaking segments. The upcoming bus manufacturing plant would provide the necessary impetus to achieve our next trajectory of growth with best in class buses”

Eicher has been a pioneer in driving innovation in the Indian bus segment and was instrumental in producing the The First Safe School Bus” in India. The bus was developed in association with IRTE (Institute of Road Traffic Education) in the year 1996, thereby pioneering the concept of School Bus in the country. Eicher buses provide superior fuel efficiency and have superior aesthetics and ergonomy as compared to the competition.

Disclaimer: All statements included or incorporated by reference in this media release, other than statements or characterizations of historical fact, are forward-looking statements. These forward-looking statements are based on our current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by us. Although VE Commercial Vehicles believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Any forward-looking statement speaks only as of the date on which such statement was made, and VE Commercial Vehicles undertakes no obligation to Update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. No assurance can be given that actual results, performance or achievement expressed in, or implied by, forward-looking statements within this disclosure will occur, or if they do, that any benefits can be derived from them.