Not only is Volvo using India as an important market, but India is now a key sourcing hub for the group. In 2000, Volvo commenced global sourcing from India which continues to develop and expand. Volvo’s IT sourcing business has grown rapidly over the years. In 2006, Volvo established its product development centre in Bangalore which already employs over 200 people. Also present on the Indian market with important functions like transports, product development, spare parts and production material are Volvo Logistics, Volvo 3P, Volvo Aero, Volvo Parts and Volvo Powertrain.
When it comes to our corporate value of environmental care, Volvo Trucks and Volvo Construction Equipment were amongst the very first to introduce vehicles with Euro III engines in India. Another value, safety, incorporates a key component – the driver. Therefore driver training became the very first condition in India, even before Volvo sold its first truck or bus in the country. Today, over 15,000 drivers have been trained by Volvo. Also, our core value of quality has paid back substantially. For example, Volvo Trucks produced in India are exported to one of the most demanding markets in the world – South Korea.
The Volvo Brand has built a strong equity in India across Business Areas while the nation-wide popularity of Volvo Buses has taken the brand into the homes of people in India.
The last couple of years Volvo has further expanded its relevance in India through some significant events which now makes Volvo a complete supplier of products.
In early 2007, Volvo acquired the Ingersoll Rand business in India adding not only a manufacturing footprint to its portfolio, but also expanding its range of Excavators, Motor Graders, Articulated Haulers, Wheel Loaders with a wide range of locally produced Road Machinery equipment.
In early 2008, Volvo Buses India became an independent company, adding a new factory into their portfolio for Bus Body building and also becoming a unique organisation in India to provide a range of services like chassis, body, after-sales and advisory on bus solutions. The new factory already employs an additional 500 employees and is now ready to cater to export markets too.
In mid 2008, Volvo signed an agreement with Eicher Motors to set up a new joint-venture company which will provide Volvo with a platform to address the large Indian truck market of over 250,000 trucks besides exploiting synergies between the two companies.