Volvo to open Business Finance Company

Bangalore, June 13: Volvo India Limited, leading global transport solutions provider proposes to establish Volvo Business Finance Company shortly, Company Managing Director Eric Lablanc said today.

"No time frame was set for opening the Finance Company, but it would only to finance purchase of Volvo manufactured Trucks, Buses and construction equipment", Mr Eric added. He said that the company, which completed 10 years of its operations in India, has made inroads in all its business and in each segments including Truck, Bus and Construction equipment the company has achieved a considerable achievement in market share.

Replying to a question, Mr Eric clarified that though the company has acquired shares with Eicher, Volvo's truck manufacturing plant at Hoskote will not involve in manufacturing trucks under Joint Venture. "Eicher, the manufacturers of bus and trucks, and Volvo will jointly strive to overcome competition from Tata and Ashok Leyland. At present Eicher has three per cent market share and we want to increase it to 13 per cent to 15 per cent by 2015 increasing the capacity to manufacture 100,000 trucks." Volvo has signed an agreement with Eicher to set-up a new Joint Venture. It provides Volvo a platform to address the large Indian truck market of over 250,000 trucks besides exploiting synergies between the two companies. Volvo has invested 225 Million dollar in this JV which would be effective from July this year.

Mr Eric said that Volvo Construction Equipment has achieved a 14 per cent market share in Excavators, 26 per cent in road compaction machinery, 37 per cent in Motor Graders, 100 per cent in Articulated Haulers. Volvo Penta enjoys 50 per cent market share in High Speed Craft.

UNI