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Volvo may ride Nissan Diesel & DongFeng trucks
Swedish truck and bus major Volvo India is considering the launch of trucks from its Nissan Diesel range as well as its Chinese partner DongFeng Automobile Company in the country. The move is part of the company’s strategy to corner 20-25% market share in the Asian commercial vehicles (CV) market with major volumes coming from India and China.
“We can achieve the target by introducing different global brands in India. We are looking at the twin entry of Nissan Diesel and DongFeng Company’s trucks in the Indian market. Their range of products is ideal for the Indian market, both in terms of price and the load carrying capacity. We intend to achieve higher localisation (currently 10-15%) to make these trucks competitive in the price-sensitive Indian market,” Volvo India MD Eric Leblanc told ET.
Nissan Diesel is an established brand in South East Asia while DongFeng is one of the largest CV players in China, which can be leveraged for the Indian market. The high-powered Volvo trucks are too expensive for the Indian CV market.
With its multi-brand platforms, the company aims to achieve a 10-fold increase in annual sales at 10,000 units in five years. Volvo has a production capacity of 1,600 trucks and buses at its Bangalore facility. It is eyeing the 16-49 tonne truck segment with under-300 horsepower engine capacity for India.
On the LCV entry, Mr Leblanc said Volvo is interested in considering a local partner in India to achieve greater volumes in the domestic market quickly. The company is also in discussions with a few Indian CV makers for possible joint ventures or acquisition for organic growth.
Besides trucks, Volvo will introduce fully-built buses with an initial capacity of 500 units for the intra and inter-city transport. It has entered into a joint venture with Jaico Company for bus body building facility at its Bangalore facility.
“We are offering transport solutions in different metro cities of Chile, Columbia and Brazil. Some states in India have also evinced keen interest to have dedicated motorised transport systems. We are planning these transport solutions for different metro cities in India in the near future,” Mr Leblanc added.
The company is also looking at the heavy construction equipment market through its subsidiary Volvo Construction Equipment Company, which will introduce a complete range of products for the domestic market.
“We can achieve the target by introducing different global brands in India. We are looking at the twin entry of Nissan Diesel and DongFeng Company’s trucks in the Indian market. Their range of products is ideal for the Indian market, both in terms of price and the load carrying capacity. We intend to achieve higher localisation (currently 10-15%) to make these trucks competitive in the price-sensitive Indian market,” Volvo India MD Eric Leblanc told ET.
Nissan Diesel is an established brand in South East Asia while DongFeng is one of the largest CV players in China, which can be leveraged for the Indian market. The high-powered Volvo trucks are too expensive for the Indian CV market.
With its multi-brand platforms, the company aims to achieve a 10-fold increase in annual sales at 10,000 units in five years. Volvo has a production capacity of 1,600 trucks and buses at its Bangalore facility. It is eyeing the 16-49 tonne truck segment with under-300 horsepower engine capacity for India.
On the LCV entry, Mr Leblanc said Volvo is interested in considering a local partner in India to achieve greater volumes in the domestic market quickly. The company is also in discussions with a few Indian CV makers for possible joint ventures or acquisition for organic growth.
Besides trucks, Volvo will introduce fully-built buses with an initial capacity of 500 units for the intra and inter-city transport. It has entered into a joint venture with Jaico Company for bus body building facility at its Bangalore facility.
“We are offering transport solutions in different metro cities of Chile, Columbia and Brazil. Some states in India have also evinced keen interest to have dedicated motorised transport systems. We are planning these transport solutions for different metro cities in India in the near future,” Mr Leblanc added.
The company is also looking at the heavy construction equipment market through its subsidiary Volvo Construction Equipment Company, which will introduce a complete range of products for the domestic market.
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