World’s leading truck-maker Volvo is mulling to source auto components for global market from its Indian joint venture, VE Commercial Vehicles (VECV).
“The driveline parts like transmisson or gears which we are manufacturing here can be supplied to some of the Volvo group companies over a period of time.At present, we are not supplying auto parts to Volvo, but we are in talks. They are evaluating us to be their supplier for auto parts,” Vinod Aggarwal, CEO of Volvo-Eicher Commercial Vehicles said.
The Sweden-based Volvo Group is exploring the possibilities as it wants to take advantage of the low-cost manufacturing in India.
“Nothing has been finalised yet. These are very complex and sensitive parts. These need to approved by the the Volvo Group for European market,” Aggarwal said.
VECV has already a component manufacturing plant in Dewas (Madhya Pradesh) and a second plant is under construction in the adjacent area.
The Volvo group has already expressed its intent to source engine from VECV’s upcoming engine plant in Pithampur. It will be the global hub for producing engines which go into Volvo group’s trucks and buses worldwide.
VECV, an equal joint venture between the Volvo Group and Eicher Motors, has been in operation since 2008. The venture was set up to manufacture the complete range of Eicher trucks and buses, its components and engineering design services businesses as well as sales and distribution business of Volvo trucks within India.