Volvo Eicher Commercial Vehicles (VECV) is planning to spend INR2.88bn (US$53m) at its Pithampur plant in Madhya Pradesh to expand and increase production capacity.

Expansion will make room for manufacture and assembly of the new medium duty engine which will be offered in Volvo trucks and buses worldwide, the  Economic Times reported, citing VECV CEO Vinod Aggarwal.

Engine production capacity will be increased from 60,000 now to 160,000 units by 2016-17.