Business

Volvo-Eicher venture to become operational by November

BANGALORE: Volvo India expects to penetrate the light and medium commercial vehicles segment, when its joint venture with Eicher becomes operational by November, Eric Leblanc, Managing Director, Volvo India, said here on Friday. The joint venture is likely to involve Rs. 1,000 crore investment from Volvo. The Swedish company has so far invested Rs. 200 crore on its Bangalore plant.

Talking to reporters on Volvo India completing ten years here, Mr. Leblanc said, “The Indian market for trucks is different and lighter tonnage vehicles have large demand. Eicher’s 40,000 trucks a year capacity in that segment and Volvo’s leadership in articulated haulers and large trucks, will complement each other”. Last year, Volvo acquired the Ingersoll Rand business in India, expanding the range of excavators and construction equipment.

The Volvo plant near Bangalore has a capacity of 2,500 buses and trucks a year. Trucks made here have been exported, mainly to Korea. Volvo India reported a 20 per cent growth last year and Asia Pacific as a whole contributed 15 per cent of the group’s sales and 17 per cent of its workforce. The Volvo group had euro 31 billion revenues last year.

On Volvo’s plans to significantly expand its India operations, he said, “Our back office IT infrastructure is largely sourced here. Close to 25 per cent of vehicle and component parts are sourced locally.”.

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