Bangalore: The world’s second largest truck maker, Volvo Group, is targeting a five-fold expansion of its market share in India by turning out new models for container and freight transport.
Volvo, which has an equal joint venture with Eicher Motors India Ltd, wants to raise its share of India’s heavy-duty truck market to 15% from 3%, a company official said, without specifying a timeline in which it will be achieved. It expects sales to reach 100,000 by 2015.
The Swedish group will both upgrade Eicher commercial vehicles transferred to the venture—VE Commercial Vehicles Ltd—and launch new models in the 19-45 tonne category of transport trucks, said Eric Leblanc, managing director of Volvo India Pvt Ltd, the local subsidiary of Volvo Group.
The vehicle-maker is hoping to cash in on India’s growing economy as it competes with Tata Motors Ltd and Ashok Leyland Ltd, among the country’s oldest truck markers. India’s truck market is the world’s fourth largest, with annual sales of 400,000 units.
“It is a sensitive segment that operates on price against Tata and Ashok Leyland,” said Leblanc. But “we will not price our products lower,” he added.
VE Commercial Vehicles, formed after Eicher sold a 50% stake to Volvo in December for $350 million (around Rs1,502 crore), will be a legal entity from 1 July and be operational by October.