The Hindu Business Line : Volvo-Eicher plans mining application products

New Delhi, Nov. 29 VE Commercial Vehicles, the joint venture between Eicher Motors and Swedish group AB Volvo, is planning to cater to a complete range of mining application products. Currently Volvo is already selling products for deep mining applications. Eicher Motor is seeking to complement its partner’s product range by offering equipments in the lower-end category that can be used for different applications for the mining and construction industry.

“We are looking to bring in products in the mining segment in a different category that will complement Volvo’s products, thus aiming to become a full range player as Volvo-Eicher together in different segments,” said Mr Siddhartha Lal, Managing Director and Chief Executive Officer of VE Commercial Vehicles.

He also said the two companies had initiated processes for joint sourcing of components.

“As a group we are trying to source components together. So we would be sourcing from our vendors for Volvo globally, which would make us competitively priced. At the same time we are also sourcing from Volvo’s vendors globally,” said Mr Lal.

He, however, declined to give further details on the quantum of sourcing that the two companies are aiming at.

Plans, products

Elaborating on the current product and expansion plans of the company, Mr Lal said as the integration of different processes take place, the newer products that would get rolled out would have features from Volvo.

“While completely new products that would be developed as a part of the joint venture may be rolled out in two year’s time, we would incorporate different features and processes in the vehicles that are under production at different levels as the integration process goes on,” he said.

Explaining the branding strategy, he said all the mass market products that would be rolled out would be produced under the Eicher brand name and for premium products it would be Volvo.

VE Commercial Vehicles is aiming to tap the export market in Africa, West Asia and South East Asia in over two year’s time.

“This would be mainly Eicher products with the specifications for those markets that will be sold under Volvo distribution network. But since Volvo lacks the products below a certain price point, we hope to serve those markets with our products,” added Mr Lal.

Eicher has a plant in Madhya Pradesh with a capacity of 4000 units a month, which is currently running at a capacity of around 40 per cent.

Volvo has a capacity to make 45,000 trucks annually at its plant near Bangalore.

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