Swedish truck maker Volvo AB on Tuesday unveiled a new medium truck model for South America, the Volvo VM, which it expects to secure 10% of the market within just one year, Dow Jones reported.

Investment in the new model totals $US35 million, Volvo told the news agency, and the aim is to sell 1,500 VM trucks next year, taking about 10% of the market for medium trucks in South America.

The new VM is the company’s first medium truck model to be developed and produced outside Europe – the NH, FH and FM have already been in production at the factory in Curitiba, Brazil, for a number of years, Dow Jones said.

Volvo told the news agency the VM has been developed to meet South American customers’ demand for a medium truck for regional distribution and urban operations.

Dow Jones said the VM is delivered with a fully-built body directly from the factory in Curitiba and comes with a choice of two engines producing 210 and 240 horsepower respectively about 75-80% of the components in the new model are made locally.

Some components in the new model come from Renault‘s medium-range model, the Midlum, the report added.