Volvo India announces new investments, to scale up commercial vehicle business
Besides earlier investments of INR 1,000 crores in Indian operations over the past decade, Volvo, which has been dominating the Indian luxury bus segment, will be investing additional capital in the country targeting increased Commercial Vehicle Business.
Kamal Bali, Volvo India Managing Director speaking at the sidelines of Hero Mindmine Summit confirmed this investment. Volvo India which operates three facilities in and around Bangalore for the production of trucks, buses and construction equipment, will be scaling up operations over the next few years. Added investment is planned for expansion of production capacities, service networks and introduction of new products across all these three domains.
The announcement comes at a time when the commercial vehicle industry in India continues to post negative growth. Fiscal ending 31st March posted sales of 6.14 lakhs, while the previous fiscal posted sales of 6.32 lakhs, a decline of 2.83 percent. This is an overall scenario. But, speaking about premium segment in CVs, Volvo India is optimistic about increased growth. They are hopeful that the demand in premium segment will increase by up to 40% this year.
Recently, the Volvo Eicher JV launched three trucks under the Pro 6000 series of nextgen trucks with which the company eyes a 15 percent share in India’s heavy duty truck market.