INDIA: Volvo will use new plant as export hub
Volvo AB will eventually export 30% of capacity at its Indian engine plant, due to open next year, as the truckmaker looks to leverage cost efficiencies from its operations in the country.
Volvo will also increase the annual capacity of the plant by 25% from 80,000 engines by 2016, CEO Olof Persson told reporters in Bangalore.
He said: "The long-term capacity of the engine factory is 100,000 engines and around 30% of that is going out of India into Europe."
Volvo, which operates in India alongside local partner Eicher Motors, joins a growing list of global vehicle makers seeking to use India as a manufacturing hub for parts and components to reduce costs and as an export base to other emerging markets.
Persson added that Volvo will work with Eicher to accelerate local content in the engines produced at the plant in Pithampur, central India.
Volvo AB’s plants in Europe were operating at less than full capacity, the company said last month, and it forecast no truck market growth in the region or in the US next year.
The company, which makes trucks under the Renault, Mack, UD Trucks and Eicher brands as well as its own name, said last month that operating profit for the quarter to September halved from a year previously, as new orders during the period fell 25%.
Quarterly/fiscal full year results continued to roll in this week with a healthy uptick at Suzuki in 2012/3, the latest Japanese automaker to finally shrug off the combined effects of the double whamm...
Despite strong developing competition, Volvo continues to lead in the car safety technologies. Continued work on the improvement of quality and reliability, and above all the safety of users makes the...
This QUBE report from just-auto provides a comprehensive overview of the global heavy trucks market, major manufacturers, top markets, manufacturing trends and market size forecasts. Use this report t...
This QUBE report from just-auto provides a comprehensive overview of the global transmissions sector, major suppliers, top markets, technology trends and market size forecasts. Use this report to gain...
This report analyzes the worldwide markets for Electric Vehicles (EVs) in Units by the following Product Segments: Battery Powered Electric Vehicles (BPEVs), Hybrid Electric Vehicles (HEVs), and Fuel ...
After leading the successful expansion of Porsche in China since 2007, Helmut Bröker is to take over as head of the region covering the Middle East, Africa, India, South-East Asia, Australia/New Zeala...
- COMMENT: US JLR plant likely to get a warm welcome
- THE WEEK THAT WAS: Paris, the US, Sweden...
- VEHICLE ANALYSIS: 2014 Kia Sportage
- Special management briefing: Paris reflections (2)
- Special management briefing: Paris reflections (1)
- JLR eyes US southern states 'transplant' - paper
- Tesla outsells rivals as Europe sales rise 6%
- JLR looks to increase home supply content
- Ford announces new engine investment for Dagenham
- JLR starts Discovery Sport production
- Jaguar Land Rover: Providing remarkable growth throughout the economic downturn
- Ford Motor Company - Strategy and SWOT Report
- PLDB - vehicle cycle plan database (annual subscription)
- Global light vehicle safety systems market- forecasts to 2029
- LMC Automotive's European Passenger Car Production Estimates (annual subscription)