Volvo scouting for partner

Volvo, the Swedish earth-moving and heavy vehicles manufacturer, is examining the feasibility of setting up a unit to make entry-level trucks in India, while scouting for other suitable locations in Asia.

Plans second unit

AB Volvo’s Executive Vice-President, Jorma Halonen, told reporters here on Monday that Volvo India now manufactured trucks with 16 tonnes and above capacity, turning out close to 1,000 units annually and estimated the local market size to be around two lakh trucks, including those with a lower load capacity. “To be a large volume player in the Indian market we may look at either a joint venture partner or an Indian automotive company to be a technology partner. We are holding talks with some companies and may even set up the new unit close to our plant near Bangalore,” Mr. Halonen said.

India could also be the location Volvo is considering for an engine and transmission plant to serve the Asian market, which at present has an eight per cent share in the company’s total revenues and with the potential to grow to an 18 per cent share, he said.