Volvo to multiply exports from india

Volvo, Swedish bus manufacturer, expects to export 25% of its production in India in the next 3 to 5 years from 5% at present. Volvo, Swedish bus manufacturer, expects to export 25% of its

production in India in the next 3 to 5 years from 5% at present. “Although our prime focus will continue to be India for years to come, we are also expecting to export 25% of our production

in the next 3-5 years,” said Akash Passey, managing director, Volvo Buses India Private Ltd, at the launch of the company’s unique after-sales model called as Volvo Bus Centre in Mumbai.

Passey said the company currently ships close to 5% of the buses manufactured at its Bangalore facility to Sri Lanka and Bangladesh. It will start exporting to South Africa from early 2011.

In terms of units, exports could touch 250 buses once its plant reaches full capacity of 1,000 units by December 2012. The company is planning to increase the capacity further. Last year

Volvo had sold 520 units in India and this year it plans to sell over 600 units, a growth of over 15%. “In 2009 around 80% of the orders came from the city buses backed by several government

schemes, while this year the inter-city market has revived and we expect a major chunk of the orders from there. In fact, our order-book is completely sold out for the year,” he said. On

the Bus Centre, Passey said the after-sales model is being introduced in India for the first time and will be set up initially in five cities- Mumbai, Bangalore, Delhi, Chennai and

Hyderabad— on a dealership basis. Under the model, the company would offer repairs and spare parts, accident repairs, parts warehouse, refurbishment, special bus technical support and

implementation and operation of information technology systems. “It’s a very successful model worldwide and in the next 3-5 years, we expect close to 50% of our revenues from this service in

India,” said Passey. Passey said the company is experiencing some pressure on the price front due to increasing raw material costs and will take a call on raising the prices after the

current quarter. Each Volvo bus typically sells for around Rs1 crore and there are over 4,000 buses running in the country.