Swedish manufacturer Volvo has said it plans to use its factory in India to build buses for export back to its developed markets in Europe.
“We plan to use India for manufacturing buses to sell in Europe,” Volvo Buses President Hakan Agnevall told reporters in India.
The first bus made in the Indian facility will be unveiled later this year in Europe, he added.
Agnevall said that the company’s Asia Leverage strategy aims to utilise its manufacturing presence in India and China to cater to demands in other global markets.”
At present Volvo uses its Indian manufacturing facility to build inter-city coaches and city buses for sale in countries in South Asia and South Africa, he said
“We are confident we will leverage the skills and strengths in India to meet European market requirements,” he added.
“The other aspect of the Asia Leverage programme is to ensure that by catering to exports, the India facility will be able to better cope with the cyclical domestic market demands,” he said.
“The company will gradually scale up exports from India to cater to more and more markets in future.”
Volvo Buses senior vice presidentAkash Passey said the company is actively exploring opportunities to supply to new markets and in the long-term aims to enhance the role of India in its export plans.
“Volvo Buses’ plans coincide with the Indian government’s efforts to promote manufacturing through the ‘Make in India’ initiative,” Passey said.
To strengthen various manufacturing procedures, the company has invested heavily in its Indian facilities since 2011 to strengthen various manufacturing procedures.
Volvo’s manufacturing facility currently has an annual production capacity of 1,500 buses