Volvo Secures Record Truck Order in India

STOCKHOLM - July 3, 2009: Volvo Trucks in India has secured an order for 125 trucks. It is the company’s largest order since being established in the country.

Vijay Leasing Company in Hyderabad, India is the company purchasing 125 Volvo FM trucks. The trucks will be delivered in the summer of 2009 for use in coal and steel mines in southern India. Vijay Leasing Company already owns 108 Volvo trucks.

In Volvo Trucks’ full ten-year presence in India, this is the largest order ever and a milestone, according to Pär Östberg, member of Volvo’s Group Executive Management and President of Trucks Asia. There are a total of 5,500 Volvo trucks in India, which is the world’s fourth largest truck market.

“In India, Volvo Trucks belongs to the premium segment and has secured a place as the leading manufacturer in terms of safety and environmental responsibility”, says Pär Östberg. “We have a solid customer base, very strong customer relationships and the best aftermarket solutions”.

He is cautiously optimistic about the Indian truck market and views the order as a sign that the vehicle market in India may be on the rise.

“We are observing positive signs of a recovery regarding light trucks and buses. In terms of heavy trucks, the market is still declining but at a slower rate.”

The sale is being conducted through VE Commercial Vehicles, which is a joint-venture launched in 2008 between Volvo and the Indian company, Eicher Motors. VE Commercial Vehicles comprises Eicher Motor’s trucks and buses, and the Volvo Group’s truck sales and service network for trucks and buses.