VE Commercial Vehicles Plans to Double its Production Capacity
VE Commercial Vehicles on Monday announced to double its production capacity of its Eicher branded products to over 8,000 units a month in the next three years, in a view to cater to the soaring demand for its products.
The company, which is a 50:50 joint venture between Eicher Motors and Swedish auto giant Volvo, is at present reported to undertake a Rs. 500 crore expansion programme, that the company had earlier announced.
"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 are enhancing the capacity to 7,000-8,000 units a month in the next three years", VE Commercial Vehicles Managing Director and CEO Siddhartha Lal told reporters here. In addition, he added that VE would widen the production capacity at its existing Pithampur (Madhya Pradesh) plant.
To further nudge its sales, the commercial vehicle manufacturer today formally conglomerated with the asset finance company Magma Fincorp to provide a retail financing facility for the entire Eicher range of products from the company.
Magma Fincorp Vice-Chairman and Managing Director Sanjay Chamria said, "Today we are funding less than 100 units (per month) of Eicher vehicles. With this tie up we want to push 300 units a month in the days ahead".
