Volvo 2007 Annual Report Download - page 32
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Please find page 32 of the 2007 Volvo annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Russia – the largest market
in Eastern Europe
Russia is the largest country in Europe, both
in terms of size and population. The country is
experiencing rapid economic growth driven
primarily by rising global market prices on oil,
natural gas and other commodities of which
Russia has a rich supply.
Russia is the Volvo Group’s largest market
in Eastern Europe. The in -
creasing strength of the
economy is being felt in
several of the business
areas, and at the current
growth rate, Russia will
soon be the Volvo Group’s
largest market in all of Europe.
Volvo is one of the strongest brands in the
truck market in Russia and the rest of Eastern
Europe. In 1973, Volvo Trucks was the fi rst
western truck manufacturer to supply vehicles
to the former Soviet Union. At the end of 2007,
there were approximately 38,000 Volvo trucks
in Russia. This is equivalent to about 23% of
the total foreign truck fl eet, making Volvo the
clear brand leader in the market.
“The Volvo Group’s sales in the Russian
market have largely doubled every year for the
past three years,” explains Lars Corneliusson,
President of Volvo Trucks Russia.
Volvo Trucks’ deliveries in Russia have gone
from 460 new trucks in 2003 to 2,500 in
2006. During 2007, demand was further
strengthened and Volvo’s deliveries nearly
doubled to 4,700 trucks.
Moreover, demand for used trucks from the
west has been considerable in Russia. In
2007, approximately 5,000 used Volvo trucks
were imported. However, Russian customers
are now increasingly choosing to buy new
vehicles, and in the next few years continued
increased demand is expected for western
trucks.
Volvo Trucks has two wholly owned and 40
independent authorized service centers along
important transport routes throughout Russia.
At the end of 2007, the latest Volvo Truck
Center was opened next to one of the belt-
ways in northern Moscow.
Renault Trucks, which fi rst entered the
Russian market in 2004, has also increased
its sales and sold 1,200 new trucks in Russia
in 2007, an increase of 114% compared with
the 560 trucks sold in 2006. Renault Trucks
has built a strong position in the Russian mar-
ket, primarily through the sale of used trucks.
At the end of 2007, approxi-
mately 16,000 Renault trucks
were in use in Russia. Since
its establishment in Russia
in 2004, Renault Trucks
has rapidly built a service
network and has 20 wholly
owned and independent service centers.
Growing aftermarket business
Trucks from Volvo are a common sight on the
roads throughout Eastern Europe and the
fl eet is constantly growing. In 2007, the
Group’s deliveries of heavy trucks grew by
72% to 19,102 trucks and at year-end there
were slightly more than 120,000 Volvo trucks
on the roads. The large fl eet means that
the aftermarket business is constantly grow-
The Volvo Group’s sales in the Russian market
have largely doubled every year for the past
three years, explains Lars Corneliusson,
President of Volvo Trucks Russia.
Planned expansion of the service network Total heavy truck market in Eastern EuropeVolvo Group’s sales in
Eastern Europe, SEK M
27.11616.042 11.40110.5568.344
0706050403
27,11616,042 11,40110,5568,344
010099 0403029897 09 1008070605
Source: Eurostat
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Growth
2006–2010:
≈100%
28 A global group 2007