Volvo 2011 Annual Report Download - page 30

Download and view the complete annual report

Please find page 30 of the 2011 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.

Page out of 166

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166

A GLOBAL GROUP 2011
Exciting development in VECV
The Volvo Group’s joint venture company VE Commercial
Vehicles (VECV) comprises the entire Eicher Motors
truck and bus operations and the Volvo Group’s Indian
sales operations in the truck segment as well as the serv-
ice operations for trucks and buses. The joint venture was
formed in 2008.
The Indian market for heavy-duty trucks grew by 12% to
237,000 trucks in 2011 compared to 212,000 vehicles in
2010. The market for light and medium-duty trucks grew by
19% to 103,000 vehicles (87,000).
With 11% of the total Indian market for commercial
vehicles, i.e. heavy-duty, medium-duty and light-duty trucks
as well as buses, Eicher is India’s third largest manufacturer
of commercial vehicles. The position is especially strong in
the light and medium-duty segment in which Eicher during
2011 had a market share of 30.5% (30.5). In heavy-duty
trucks the market share is developing in the right direction,
although from low levels, since Eicher during 2011 launched
its, new heavy-duty truck program based on the coopera-
tion in VECV. During 2011, Eicher had 3.1% of the market in
the heavy-duty segment compared to 2.0% the year
before. The ambition is to grow within heavy-duty trucks in
the coming years.
India to become center for new
medium-duty engine
VECV’s facility in Pithampur is home to a rapid expansion.
Part of the new construction taking place is the SEK 480 M
investment in the production of the Volvo
Group’s new global medium-duty engine.
The investment gives the Volvo Group a complete
facility in India for processing and assembling the new
medium-duty engine, which will be introduced in the
Group’s trucks and buses worldwide in the next few
years.
Through this investment, it will be possible for the
Volvo Group to locate most of its production of medium-
duty engines to VECV’s plant in Pithampur. VECV has an
established supplier base in India and efficient purchas-
ing channels and already today, VECV produces about
40,000 engines per year in the existing plant. The Group
will now have an engine platform that combines the latest
in Japanese technology with India’s highly competitive
production cost. The investment in Pithampur will result
in an annual production capacity of an additional 85,000
new medium duty base engines.
At the same time, the Volvo Group will invest an addi-
tional SEK 460 M in the Group’s production plants for
engines in Ageo, Japan and Venissieux, France. Through
this investment, the Group will, among other things, have
an annual final assembly capacity for 30,000 medium-duty
base engines for the European market.
Development of the new medium-duty engine has
been led by Volvo Powertrain in Ageo and the engine has
been designed to meet current and future exhaust require-
ments in Europe, the US and Japan.
In addition to production of the base engine itself, the
FOCUS
INDIA
The Indian market is in an exciting growth phase with
growing prosperity and increasing investments in infrastructure.
2626