Volvo Group’s equal joint venture in India with Eicher Motors – VE Commercial Vehicles (VECV) – has announced that it is targeting 15% of total sales to come from exports within the next five years.
The Volvo distribution network in Africa, the Middle East and Southeast Asia will be used to sell the Eicher range of commercial vehicles.
Vinod Aggarwal, VECV's CEO, said the company is also considering entering the left-hand drive market.
In 2013, VECV exported 8.1% of its total sales volume, amounting to around 3,300 trucks and buses. It is now targeting markets in Ghana, Tanzania, Ivory Coast, Kenya, Sri Lanka and Bangladesh, as a means of boosting exports.
However, the company's senior vice president, Philippe Divry, ruled out selling the Eicher brand in markets such as Europe. "Eicher is the first brand within the Volvo portfolio to come from an emerging market,” he said. “This will help in serving similar markets but we don't have any plans to market the brand in Europe today."
Nevertheless, additional use will be made of the Volvo group distribution network in other emerging companies to export Eicher-branded vehicles.
In 2013, while the industry in India declined by 32.5%, VECV improved its heavy duty market share from 3.9% to 4.4%. In terms of buses, its share grew from 12% to 13.5%.
