Volvo Bets on Growing Truck Demand in India Amid Slower US Market
Volvo Trucks is optimistic about rising demand for medium and heavy-duty trucks in India driven by its robust economic growth and India’s role as a key manufacturing hub for Volvo engines and components. While demand in North America may decline, investments in India continue, including new production facilities and a focus on electric trucks despite infrastructure challenges.
Volvo Trucks sees India as a vital market and manufacturing location amid a global shift where demand for heavy-duty trucks could slow in the US and North America. Roger Alm, Volvo Trucks' president, highlighted India's fast-growing economy as fueling increasing commercial transport needs. India is already integrated into Volvo’s global supply chain, with critical engine production in Pithampur, Madhya Pradesh, and sourcing of components for trucks worldwide. Recent expansions include a ₹544 crore investment by VE Commercial Vehicles, a Volvo-Eicher joint venture, to produce 12-speed automated manual transmissions, addressing demand in India and Asia-Oceania. Volvo is optimistic about electric truck adoption in India as part of emission reduction efforts, although challenges persist due to insufficient charging infrastructure. The broader context shows India’s truck market is growing at a compound annual growth rate of over 7%, driven by logistics, infrastructure development, and government initiatives. Volvo is leveraging this growth potential while maintaining leadership in electric heavy trucks globally, aiming to adapt and expand in India’s evolving market landscape.
