Volvo India to drive past 2016 with 20% growth

Volvo India to drive past 2016 with 20% growth

Volvo India, fully owned by Sweden-based AB Volvo Group, has said that it would end up closing the year, ending December 2016, with about 20% growth over 2015. The growth was primarily driven by construction equipment, which is growing at around 40%.

Speaking to Business Standard on the sidelines of CII's Cost Congress 2016, Kamal Bali, Managing Director, Volvo India said that today Volvo India operations include all its four businesses including construction equipment, trucks, buses, and engines. Besides, it is also an important destination as far as Information Technology is concerned.

"We had a very good year (2016) and we will end up closing the year with around 20% growth," said Bali. While the construction business is growing at around 40%, trucks, buses and, engines businesses also have grown well.

Volvo Trucks is a major player in the mining segment, with a running population of around 6,000 units and a market share of around 60%. As far as buses concerned, which is the third largest business for the company, Volvo has sold around 6,000 buses in India cumulatively.

Recently the company has introduced hybrid buses in India. It also plans to export Volvo buses built in Bangalore to some destinations in Europe, which the company says is a baby step.

Bali said that the current high pace of growth in construction equipment industry as a whole may not be sustainable but it will continue to grow in double digits. As compared to 40% growth, the construction equipment industry may grow between 10 to 20% band over the next few years, while the other businesses are expected to continue the current momentum of 7 to 10% growth.

Speaking about the sales of Volvo Penta engines in India, he said these are being imported currently from other plants of AB Volvo Group in Europe to cater the marine and industrial applications and its power outputs are between 100 and 900 HP.

The company has already set up a facility at its JV manufacturing location near Indore to manufacture some range of Volvo engines.

"We are bullish about India and the growth here. Volvo will play its role in India growth story and promote sustainable solutions in the Indian marketplace to help drive prosperity" he added.

He felt that India is on the cusp of a major transformation, and some reforms , as everywhere else, may be painful in short-term like demonetisation, but in the long-run, it will be great for the country and it will also support growth.