Mumbai: Swedish automobile major, Volvo AB is entering the business of construction equipment manufacturing in India within a span of three to four years, Mrityunjaya Singh, head of the CE division of Volvo India Private Limited, said.
Volvo is currently importing construction equipment from South Korea, Canada and Sweden. But, Singh said, going by the current business volumes, importing the machines from outside would not be a sustainable business model.
Volvo is chalking out details of investment requirements, he said, adding that setting up a manufacturing base for construction equipment in India was not an option, but a necessity. The production unit would come up at the existing facility near Bangalore, where the company was already manufacturing Volvo trucks and buses, he added.
Volvo's construction equipment division currently markets wheel loaders, articulated haulers, excavators and motor graders.
Globally, Volvo's construction equipment sales were $5 billion with Asia contributing 10 per cent to the total worldwide revenue. Volvo had invested $60 million to start operations in India.