The Volvo Group will be investing Rs.2,000 crore in India over the next couple of years, said Olof Persson, President and Chief Executive Officer, Volvo Group.
Addressing reporters here on Friday, he said that this investment would go into product development, research and developing new facilities. That apart, the company would also be investing Rs.1,800 crore on the joint venture with Eicher Motors. He, however, said that there was no specified time-frame for both these investments. “Volvo Group has been in India for the past 15 years and will continue to invest in the country.”
He also said that the Volvo’s engine plant at Pithampur, Madhya Pradesh, would be strengthened to a maximum engine production of 100,000, an increase of capacity by around 25 per cent, by 2016. Around 30 per cent of its production would be exported to Europe.
Mr. Persson said Volvo was looking at making India a manufacturing and export hub for various parts and components. He also said that the company was diversifying into markets such as haulage, construction and mining. He added that the group was looking at modernisation of the Eicher range, besides focussing on the initiative to go global. With the expectation that the Indian market would grow faster than other regions, the company was looking at setting up a new engine plant, bus body plant, paint-shop and a test facility.