Volvo India might set up a
manufacturing plant in India is the current healthy demand rates persist. A
decision on the proposed plant would be taken in the next five years.
Volvo India has a construction
equipment division in India operating since 1998 through nine dealers. In 2005,
total revenues from this division were Rs.450 crore, almost doubling from the
2004 levels. Volvo currently imports machinery from its South Korean and
Canadian outfits among others for sale in India.
In January 2006, Volvo launched the EC
700 BPL excavator costing Rs.3 crore. One of its oldest equipment is the G390
grader for mining and road construction, imported from Canada. Volvo India has
sold 550 units in India so far, with the current cost of the equipment being
Rs.75 lakh per piece.