The Hindu Business Line : Volvo has no plans for low payload trucks

VOLVO India Private Ltd may feel partly vindicated on its predictions about the Indian commercial vehicles market, but that has by no means fuelled ambition to be a volume player.

There are no plans at present to bring in lower payload trucks from other group brands, senior company officials said on the sidelines of a press briefing here today.

Volvo's first Indian built truck - - a FH12 - - was rolled out in June 1998. In presentations since then, it held the view that the domestic commercial vehicles market, dominated by rigid 2-axle trucks, would eventually yield space for multi-axle commercial vehicles. This was to occur alongside road transport's shift to a hub and spoke operation, where trunk routes would be run by multi-axle tractor trailers, the subsequent distribution by medium/heavy trucks and light commercial vehicles.

Aided by the recent spate of road projects and the intrinsic merit of multi-axle vehicles, the latter's share in truck sales is currently near 50 per cent. Within it tractor trailer volumes have picked up. In 1998, multi-axles had a mere 10 per cent share.

Forecasting into 2007, Mr Ulf Nordqvist, Managing Director, Volvo India, said, "emission norms will become critical, power to weight ratio will become an index of trucking efficiency and higher safety and reliability will become important." According to him, the norm may be 260 hp engine for 25 tonne-rigid truck, 320 hp for 40 tonne-rigid and 400 hp for 49 tone-tractor trailer. Which in turn calls for matching drive-train, gears, so on.

Volvo has sold some 1,600 trucks and close to 200 buses. It has now brought in the FM12 6x4 380 hp tractor, the FM9 6x2 300hp tractor, the FM9 6x4 300 hp tipper and the FM9 8x4 tipper, all part of the FM series' global upgrade.

According to Mr Dinesh Kumar Jain, Regional Manager (West), Volvo India, the new models replace the FH12 and FM7 earlier sold in India. Prices have increased by 4 per cent as a result, but Volvo's clientele is not sensitive to such changes. The new tractors range in price from Rs 29-35 lakh and the tippers, from Rs 48-49 lakh, he said.

"The first phase of the market evolution we outlined has come true,'' Mr Mansoor Ahmad, Head (Sales & Marketing), Volvo India, said referring to the rise of multi-axle trucks. Volvo India's volume growth, he feels, should now be in double digits. If efficiency is visible on trunk routes, theoretically the distribution routes should follow suit. Globally, Volvo owns the Mac (North America) and Renault truck brands, of which the latter has lower payload distribution trucks. So, will Renault make its debut? Asked, Mr Ahmad replied, "There are no plans at present to bring Renault models.'' The company's focus in commercial vehicles continues to be multi-axle trucks, tractor trailers, tippers and special application vehicles used in mining, construction etc.

Instead, what Mr Nordqvist promises, is a doubling of component export from last year's 10 million euros worth, to 20 million euros. The opportunity is actually bigger, Volvo seeking to source one billion euros worth of components from geographies other than Europe and the US.

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