Volvo Buses to invest Rs.400 crore in India over the next five years
14 Oct 2011
Swedish transport major Volvo will invest Rs400 crore over the next five years to expand its bus manufacturing unit in India, chief executive Hakan Karlsson, said in Bangalore on Thursday.
''We will invest Rs.400 crore during the next five years to expand our installed production capacity to 5,000 units per annum in two phases, from 1,000 units currently and introduce a range of new products, including hybrid version,'' said Karlsson.
''Our target is to sell about 5,000 buses per annum from 2015 and increase revenues to $1 billion,'' he said.
The company sold 560 buses and earned revenues of Rs.560 crore in 2010. This year, it hopes to sell 800 buses and get Rs.800 crore in revenues. Akash Passey, managing director, Volvo Buses India, said the local manufacturing unit would employ about 5,000 people – as against the existing 1,000 – by 2015.
Volvo Buses, which entered India about a decade ago, operates an integrated manufacturing facility on 125 acres of land at Hoskote near Bangalore. The company has sold about 5,000 luxury buses in India. It plans to set up a second manufacturing unit, but has not decided the location.
''We will extend our presence in the local market and become a global hub for various selected models, as we see India emerging as one of our largest markets globally in the coming years,'' said Karlsson, the visiting CEO.
According to Passey, over the next four years India would emerge as the second-largest market globally after China for Volvo Buses. India is today the fourth-largest market for Volvo Buses, which claims to have a 70 per cent market share in the luxury, inter-city coach segment.