VE Commercial Vehicles on Monday said it will double the production capacity of its

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Eicher branded products to up to 8,000 units a month in the next three years in order to cater to the rising demand for its products.

The investment for enhancing the capacity would be a part of the Rs 500 crore capex plan for the next three years 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.

The company would expand the capacity at its existing Pithampur (Madhya Pradesh) plant, he added.

In the first two months of this year, VE Commercial Vehicles has sold abouts 6,000 units of Eicher trucks and buses as against 1,500 units in the year-ago period.

To push its sales further, the commercial vehicle maker today formally tied-up with the asset finance company Magma Fincorp to provide a retail financing facility for the entire VE Commercial Vehicle range of products.