Volvo-Eicher venture to be operational by November

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 of Volvo India, said. The joint venture is likely to involve Rs1,000 crore (US$233.3 million) investment from Volvo. 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. The Volvo group had 31 billion (US$47.96 billion) in 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% of vehicle and component parts is sourced locally, Leblanc said. (June 14, 2008)