Volvo 2011 Annual Report Download - page 28

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A GLOBAL GROUP 2011
Growing markets
Sales in Asia accounted for 24% of Group net sales dur-
ing 2011. In 2000 the corresponding figure was 7%. The
sharp increase has primarily been achieved by the acqui-
sitions of UD Trucks of Japan (which was named Nissan
Diesel at the time of the acquisition), the majority in Lingong
of China and through the joint venture VECV in India, but
also through substantial organic growth in many markets.
Through the brands UD Trucks, Volvo, Renault Trucks
and Eicher, the Volvo Group has strong positions in
Japan, India, Korea and all of Southeast Asia.
In Japan the heavy-duty truck market grew by 1% to
24,800 vehicles during 2011. The first half of the year
was weak, primarily as an effect of the earthquake and
ensuing tsunami that hit the country on March 11.
Towards the end of the year, there were signs of a recovery
in the market, among other things against the backdrop
of the work to rebuild devastated regions beginning to get
underway. For 2012, the Japanese market for heavy-duty
trucks is expected to grow to approximately 30,000 vehicles.
In China the largest part of net sales stem from con-
struction equipment. The Chinese market slowed some-
what during the latter part of 2011 after a number of years
of strong growth. In total, the market grew by 7% during the
year. The Volvo Group strengthened its position as leader
in the segment for wheel loaders and excavators. In Asia
outside of China, the market for construction equipment
grew by 28%. In 2012 the Chinese market is expected to
be on the same level as in 2011. Asia excluding China is
expected to grow by 10–20%.
Volvo CE number 1 in China
With a volume totaling 405,000 machines, the Chinese
market for construction equipment is the world’s largest.
When measured in number of units, it is in fact almost as
large as the rest of the world put together. And the Volvo
Group is number 1 in wheel loaders and excavators in
China. During 2011 Volvo Construction Equipment’s both
brands Volvo and SDLG had a combined market share of
12% within wheel loaders and excavators. That made
them market leaders in China, ahead of all domestic manu-
facturers and with a good margin to the other global
manufacturers. Contributing to the success was the fact
that SDLG started selling a range of four excavators, a
product they previously lacked. In January 2012, SDLG’s
new excavator plant in Linyi, China was inaugurated and at
the same time four updated versions of the excavators
were launched, In addition, the product range was
extended with one excavator.
Through both acquisitions and organic growth, the Volvo Group has
created a good position from which to develop further in the dynamic
and fast-growing markets in Asia. With increased wealth and the asso-
ciated needs for transport and with substantial investments in infra-
structure, the region is of large and growing importance to the Group.
DEVELOPMENT BY CONTINENT
ASIA GROWING IN IMPORTANCE
A GLOBAL GROUP 2011
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