Volvo Group will be investing in the expansion of capacity at its Bangalore plant for a second manufacturing
line, where the new Pro 8000 trucks will be manufactured. VECV, the JV company, will be investing another Rs 600 crore to bring the 'Pro' series into the market.
Vinod Aggarwal, CEO, VE Commercial Vehicles, told ET, "These two years have been the most difficult period and we have sustained these two years with glory. Even in this difficult period, we have executed our strategy on time and in the most efficient manner. The next one year is going to be exciting, as we would be launching a new range of trucks over the next 12-18 months (5-49 tonnes)."
Most part of the new Pro Series range starting with Pro 1000 light duty trucks will be launched this month, followed by the 3000 series medium-duty trucks in March, then 6000 and 8000 heavy-duty trucks in the second half of this year.
To make the most of the new range of trucks, in order to focus on sales, VECV is restructuring its sales and marketing functions, by creating separate verticals for light and medium-duty trucks, heavy-duty trucks and buses and the same will be replicated in the showrooms as well.
Declining to comment on the exact quantum of investment in the second manufacturing line in Bangalore, Philippe Divry, senior VP, Trucks Joint Venture India said, "It is part of our overall investment plan in Bangalore; we are still in the investment phase. The PRO 8000 series will be built there. The second line will be ready by the middle of year."
VECV posted 15.5% decline in volumes in 2013 better than the overall market decline of 24.7% in 2013 in the 5 tonne-49 tonne category. The overall market came down to 297,316 units from almost 4 lakh units sold in 2012. The likes of Tata Motors and Ashok Leyland announced VRS schemes in their plants while Volvo Eicher is likely to hire more people to meet the demand of its new products.
The company posted its highest ever market share of 13.8% in 2013. Eicher's light and medium-duty market share declined marginally to 30.4% in 2013 as compared to 31.4% in CY 2012. It marginally improved the market share to 4.4% in the heavy-duty truck space and increased market share in buses to 13.5% jumping 150 basis points.
The sales of the company have doubled since setting up a joint venture with Volvo. In an era of discount war when other truckmakers are bleeding, Eicher Motors had the highest margin by a truckmaker in India of 6-6.5% for the first nine months of 2013.
"We have a very strong game plan to reach 15% market share in medium- and heavy-duty trucks," said Siddhartha Lal, MD and CEO Eicher Motors.
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