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Volvo will hike capacity and increase domestic sourcing Print E-mail
Written by Arjun   
Monday, 25 June 2007
 Volvo's manufacturing unit at Hoskote near Bangalore will hike capacity to meet the requirements for trucks and buses in the domestic and export markets.

 BANGALORE : Volvo India will double its manufacturing capacity in its factory at Hoskote near Bangalore to meet the growing demand in the domestic and export market. The bus and truck manufacturing capacity will be hiked to 2,500 units next year from 1,600 now, without the need for any additional investment. Volvo India will also source more components from the domestic market. Component sourcing from India for its global production centres had increased to 90 million this year from 75 million.
  The company is building a new plant to produce 1,000 buses at Hoskote adjacent to its truck making facility. It will commence production by December 2007, Eric Leblanc, managing director, Volvo India, said. Volvo will make both city buses and inter-city buses at this plant. The company will export 50 per cent of the production to West Asian and South East Asian nations.  Volvo India has set up a new joint venture with Jaico Automobiles of the Azad group to manufacture bus bodies at Bangalore. Volvo holds 70 per cent stake in this JV.
 “We will be ramping up our production next year. That will not require any additional investment, but we will add few more workers to take up two shifts a day”, Leblanc said.

 “The new capacity being added will be used to meet export commitments next year. We are looking at exporting 1,000 trucks in 2008”, he added.

 Volvo is pushing forward to forge an alliance with Chinese giant, Dongfeng Motor Company. In order to lower freight cost and delivery time for exporting to China, the company will import CKD kits from Sweden, assemble them at the Bangalore plant and export to China. “It is advantageous to supply completely-built-units from India to China than exporting from Sweden to China.”, Leblanc said.
 Volvo India has delivered 10 buses to Pune and has an additional order for supplying 20 buses to Bangalore Metropolitan Transport Corporation. The company  is waiting for an order from Tamil Nadu transport corporation. VOlvo is aiming at 15 per cent growth this year. It sold 650 trucks and 300 buses in India last year.
Last Updated ( Monday, 25 June 2007 )
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