Volvo introduces new generation trucks  ( June '17,2006, The Hindu, Chennai)

Volvo on Friday launched a new generation of its Volvo FH and Volvo FM trucks in the Indian market. The products include an entirely new 13-litre engine that improves upon various aspects affecting transport economy.

Recently launched globally, the new models have absorbed investment of euro 300 million by the parent company.

"The new product range helps further reinforce the company's position in India when it comes to high-performance trucking. The new Volvo FM is undoubtedly the best trucks we have ever launched in terms of fuel economy, safety and productivity,'' said Eric Leblanc, Managing Director, Volvo India Pvt. Ltd.

The new trucks have high performance engines with the FH model being fitted with the Volvo D13A. With the introduction of these new engines, the power levels have also been increased and the FH will have 520 hp, while the FM will have up to 400 hp.

The company has started production of the new truck models at its Hoskote (Karnataka) plant. No additional investments have been planned. The company had invested around Rs. 250 crore at its plant in 1998.

It makes the entire range of trucks from the FM 4X2 tractor-trailer to the latest FH 520 hp puller and these are priced at around Rs. 30 lakh and Rs. 70 lakh, respectively.

The Hoskote facility has the capacity to make 1,200 units per annum of trucks / buses. The company has been exporting buses to Sri Lanka and Bangladesh since 2003.

It commenced exports of trucks to South Korea about two years ago. To date, in India, it has sold around 1,000 buses and around 3,000 trucks.

Volvo expects its truck component exports from India to rise by 40 per cent to cross 70 million euro this year from 50 million euro last fiscal.

The company, which handles its IT outsourcing from India, will increase its headcount from 500 to 700 in the next two years.