Swedish commercial vehicles major Volvo plans to invest around Rs 500-700 crore in India in next five years to expand business activities in the country.

“Our capital expenditure is always spread over a period of 3-4 years. So, we have already invested close to Rs 1,000 crore over the last one decade. There is a plan to invest Rs 500-700 crore in the next five years,” Kamal Bali, Volvo India Managing Director told PTI here on the sidelines of Hero Mindmine Summit here.

When asked about the investment plans, he said it would be for “segments like buses, trucks, construction equipment and financial services”.

The company makes premium trucks for specialised sectors like mining, buses and all kind of construction equipment across its three manufacturing sites in Bangalore.

“We have already created facilities, so the investment will be for expansion and introduction of new products,” he said.

Commenting on the outlook for 2015, Bali said, “This year appears to be good. Last two years for CVs were little subdued. This year we feel that premium segment should grow by 40 per cent in volume terms, the normal CVs should also see a growth of 15-20 per cent.”

Commercial vehicle sales in India in 2014-15 continued to reel under a prolonged slump, posting a decline of 2.83 per cent at 6,14,961 units as against 6,32,851 units in the previous fiscal.

However, industry has been optimistic of a rebound this year, specially in the sales of heavy trucks which have gained traction due to start of various infrastructural activities like mining and construction of roads.

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