Volvo India buys out JV partner's stake

With this Volvo gets 100 per cent ownership of its Indian subsidiary.

The move will provide Volvo Buses greater flexibility to expand and pursue growth plans in the coming years, the company said.

Briefing reporters, Volvo Buses India Managing Director Akash Passey said “the future will see increase in production by close to 100 per cent by 2012, catering to more export markets and products for new segments. Volvo will step up exports in 2011, which will account for 25 to 30 per cent of total volumes of India over next few years, against the current 5 per cent.”

Volvo Bus Corporation Senior Vice President & Volvo Buses in India Board Chairman Rune Lundberg said “Covering 12 cities with our buses in just two years, is one indicator of how fast change is taking place... We will now not only sell here, but develop new products, export them making India key hub for the group.”

Volvo will augment its factory and establishment with new facilities for refurbishment operations, customer experience lounge, new integral production principles, a competence development centre and expand the paint shop. The Hosakote facility will expand almost 100 per cent resulting in 30 per cent rise in manpower in next two years.

Hands over first bus

The company began delivery of its 100 Volvo 9400 XL Multi-axle buses to VRL Logistics. The first bus was delivered on Monday. The company is expecting a growth of 15 to 20 per cent overall and soft services to give 50 per cent of the revenue in 2013-14.