Volvo AB to invest US$692 million in India over the next few years

Volvo AB will invest Rs38 billion (US$692 million) in India over the next few years, Volvo CEO Olof Persson said. The company has entered into a 50-50 joint venture with India’s Eicher Motors Ltd., in which Volvo will invest Rs18 billion (US$330 million); the rest of the investment will be in the company’s own operations. The joint venture company, VE Commercial Vehicles Ltd., will sell Volvo trucks and Eicher-branded trucks and buses in India.
Volvo, the No. 2 global truck maker by revenue, has felt the impact of the economic troubles in Europe which has led to slackening of demand. Orders from North America are soft as dealers reduce stocks while customers are reluctant to invest. On the other hand, India expects investments on infrastructure to grow to US$1 trillion until 2017, as it builds cross-country highways, ports, airports and railways to boost economic growth. (November 15, 2012)