Volvo draws up Rs 2,000 cr investment roadmap in India
Volvo Group plans to invest Rs 2,000 crore in India to expand its truck, bus and construction equipment business, its President and chief executive officer Olof Persson said on Thursday.autos Updated: Nov 15, 2012 19:13 IST
Volvo Group plans to invest Rs 2,000 crore in India to expand its truck, bus and construction equipment business, its President and Chief Executive Officer Olof Persson said on Thursday.
"....we are talking about 20 billion (rupees) going forward in the next coming years," he told a press conference here, adding the proposed investment would be in manufacturing, research and development and facilities.
"We are committed to India going forward in terms of investment," Persson said.
Separately, he added that VE Commercial Vehicles Ltd (VECV), a 50:50 joint venture between the Volvo Group and Eicher Motors Ltd (EML), would make an investment of Rs 1,800 crore in the next couple of years.
This investment would be towards massive modernisation of Eicher product range, exporting the products and setting up of new engine and busbody plants, paintshop and new test facility, Persson said.
The joint venture is setting up a plant at Pithampur in Madhya Pradesh, which would have full capacity to produce 100,000 engines by 2016.
The Volvo Group, the world's second biggest truck company, aims to source 30% of these engines for its European operations, he said.
The Volvo Group is looking to expand the size and responsibility of India hub, he said, adding, the swedish truckmaker expects the Indian market to grow faster than other regions, given the proposed investment and potential in this country.
Officials added that the Volvo Group in India constitutes three legal entities -- Volvo India Private Limited (VIPL) and Volvo Buses India (VBI) and VECV.