Swedish automaker Volvo Group has started sourcing engines for industrial applications from its equal joint venture with Eicher Motors, VE Commercial Vehicles, and may shift sourcing of engines for non-automotive products to India in the long run.
India is already the exclusive manufacturing hub for the 5-8 litre, medium-duty Euro VI engines for automotive applications for Volvo's home base in Europe. Two people aware of the company’s plans said Volvo Group plans to make India the main base for manufacturing engines for industrial applications.
An emailed query to the company seeking comments on the proposed plans remained unanswered as of press time Tuesday. Vinod Aggarwal, managing director at VE Commercial Vehicles, confirmed the company has started supplying medium duty enginees for industrial applications from its facility in Pithampur, Madhya Pradesh.
“Gradually, we will cater to more applications for non-automotive,” he told ET. “We will get into gen-sets. There are also some other non-automotive departments like construction equipment,” he said.
VE Powertrain, one of the five business verticals of VE Commercial Vehicles, already exports 2,000 engines for automotive applications every month to Volvo AB.
A separate production line has been set up in Pithampur for the manufacture of Volvo Penta engines.
The 5- and 8-liter engine Besides engines, Volvo AB is also likely to begin overseas sales of light duty UD Trucks later this year, said the sources cited earlier.
The trucks, to be built in Pithampur and meant for the Indonesian market, are now under trial and shipments will begin in the second half of 2017, they said.
Volvo Buses also intends to use the base in Bengaluru to export vehicles to western Europe in future, they said.
VE Powertrain currently has capacity to roll out 50,000 engines every year.
(Economic Times)
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