Volvo is not very optimistic about any significant growth in India this fiscal in view of the global economic slowdown, a senior company official has said.
Addressing the media on Tuesday, Volvo Trucks India president Somnath Bhattacharjee said the demand for heavy commercial vehicles had dropped significantly, and Volvo had not been spared.
"This year we expect a flat growth, as India's heavy duty truck market has declined 50 per cent in the first five months," Bhattacharjee said.
"We don't see a slowdown in the premium truck market because it is contract-driven. We cater to big corporate and high priority segments like mining."
Bhattacharjee was in Goa to unveil Volvo's new dealership in the state, which has a sizeable mining industry that requires heavy vehicles.
Maintaining that Volvo has done its homework as far as India was concerned, he said his company has created a niche segment in the country.
"This segment is fundamentally connected to power, infrastructure and urban development, which have not been much affected by the meltdown."
Bhattacharjee said the recent parliamentary elections had impacted sales as decision-making had been slackened, but added that the situation would improve.
"The general elections ensured the contracts and other tenders were deferred. All purchases were postponed, but June and July should see us fare better," he said.