The Eicher Motors/Volvo joint venture in India plans to launch two new heavy-duty commercial vehicles in two years.

VE Commercial Vehicles blends Eicher's commercial vehicles, engineering components and engineering solutions businesses with Volvo's India truck sales and distribution network.

"We are in the process of development and hope to launch that in the next fiscal year," Eicher Motors managing director Siddhartha Lal told the Economic Times of India. The venture plans a 6X4 tipper and a 6X4 tractor trailer within 18-24 months, he said. "But this would be in addition to making variants of existing models and also improving on them," Lal added.

Eicher Motors, which lags rivals Tata Motors and Ashok Leyland in sales, currently holds about 2.5% market share in the heavy-duty market, Lal said.

"Two players command over 90% share in India in the heavy-duty market...we want that to change."

Eicher can make 180 vehicles a day at its plant. "We are planning to increase capacity so as to be able to roll out as many as 300 vehicles by the end of three years," Lal said.

The joint venture will also leverage Volvo's global distribution network to export the Eicher brand of vehicles to developing countries.

"The idea is to compete against developing market players with the Eicher product range and expanded distribution network," he told the Times.

Lal also said talks were also on with Volvo to bring the Swedish firm's commercial finance business to India through the JV.