Volvo gets order for 125 trucks, sees recovery signs

Volvo gets order for 125 trucks, sees recovery signs
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First Published: Fri, Jul 03 2009. 11 48 PM IST
Updated: Fri, Jul 03 2009. 11 48 PM IST
Mumbai: The world’s second largest truck maker, Volvo AB, has secured an order to supply 125 trucks to an Indian leasing firm at a time considered a lean season for selling commercial vehicles.
The trucks, with ticket prices of around Rs70 lakh each, would be sold through Volvo Eicher Commercial Vehicles Ltd, a joint venture of the Swedish auto maker and Eicher Motors Ltd.
“We are observing positive signs of a recovery regarding light trucks and buses,” said Par Ostberg, member of Volvo’s group executive management. “In terms of heavy trucks, the market is still declining, but at a slower rate.”
Volvo Buses India has got its production capacity filled for the year already, said Akash Passey, managing director of Volvo Buses India. The firm has orders for at least 600 buses, he said. Servicing the orders will see Volvo Buses India expand to another eight cities in the next four months. It is currently present in four cities. Volvo Buses India is now set to ramp up production to its peak annual capacity of 1,000 units, and may double it later by adding a second shift, he said.
cnbctv18@livemint.com
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First Published: Fri, Jul 03 2009. 11 48 PM IST