Volvo to expand India operations

12 September, 2007

Swedish vehicle maker Volvo has plans to expand its Indian operations. A report said that the company is currently looking at entering into a joint venture with an Indian company. Besides, Volvo is also exploring the possibility of acquiring an existing truck manufacturing facility and bringing its recently acquired Japanese and Chinese truck brands to India.

Volvo is looking at expanding its truck operations in India with an eye on becoming a prime player in the 2-lakh-unit heavy duty truck market. The company has said it will initiate talks with interested companies for joint ventures, alliances or even acquisitions.

Another option being mulled over is on bringing its two recently acquired brands, Nissan Diesel from Japan and DongFeng from China, into the Indian market. Volvo, however, seems to be keeping in abeyance its plans for setting up a new plant.

Meanwhile, Volvo is gearing up for its forthcoming car launches of the Volvo S80, which is the luxury sedan, and the sports utility vehicle Volvo XC90, it was reported a few days ago.

Volvo was planning to introduce the two models with three engine offerings: 2.5 litre (diesel), 3.2-litre (petrol) and 4.4-litre (petrol) that will be available on both the models respectively. The two models will be available with a semi-automatic gearbox.

A report said that the two models are currently undergoing homologation process at the Automotive Research Association of India (ARAI) that is likely to be completed by August-September 2007.