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...
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 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...
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...
Volvo Cars has reported a break-even result for 2012 with a full-year operating income of SEK18m (US$2.8m) despite economic uncertainty in Europe which significantly impacted sales and earnings. This ...
- VEHICLE ANALYSIS: Porsche Cayenne S E-Hybrid
- THE WEEK THAT WAS: Ship shape and not too bent
- ASEAN vehicle market down almost 10% in 2014
- What now for docked Hoegh Osaka cargo?
- RESEARCH ANALYSIS: Review of instrumentation
- JLR recreates 1948 line for Defender plant tour
- Most cars unscathed by Osaka drama: ship owner
- Ford 2014 operating profit plunges $2.3bn
- "Bumps and dents" for some driveable Hoegh cars
- GENEVA DEBUTS: Opel Corsa OPC & VW Golf GTD estate