The Hindu Business Line : Eicher CVs to be equipped with Volvo engines

New Delhi, Feb. 6 Domestic commercial vehicles maker Eicher Motor Ltd will drive in with Volvo engines in its vehicles when the emission norms change in 2010.

The Swedish automotive giant AB Volvo, which signed a letter of intent with Eicher for sharing of technology and distribution network in December last year, said that it will provide the technology to Eicher in meeting the new regulations.

“We will help Eicher equip its trucks with Volvo engines when the emission norms change by 2010,” said Mr Eric Leblanc, Managing Director, Volvo India to Business Line at the sidelines of an environment seminar organised by Volvo in collaboration with SIAM and the Swedish Embassy.

Diesel trucks

Mr Leblanc said that the procedures for the joint venture between the two companies were on and by the end of the second quarter it would get operational. Elaborating on the company’s growth plans, Mr Leblanc said that Volvo was planning to introduce Nissan Diesel trucks in India in 2009.

He said that the Nissan trucks which will be positioned between Volvo’s premium trucks and Eicher’s products on the lower end of the segment, would fill the gap in the heavy duty commercial vehicles market. He, however, denied any plans to enter the sub three or one tonne CV segment whose sales are being currently driven mainly by Tata’s Ace.

With this joint venture, Volvo trucks will be priced more competitively as against its current price in the range of Rs 42-63 lakhs.

In 2007 calender year, Volvo India sold 800 trucks domestically, and exported around 200. It also sold 200 buses.

“We have a 20-25 per cent market share in Europe and North America. And with our partner we are targeting to corner a similar share of the heavy commercial vehicles segment here, which is expected to grow at around 6-8 per cent over the coming years,” added Mr Leblanc.

More Stories on : HCV/LCV/Tractors | Outlook

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page