Volvo starts sourcing industrial engines from Indian joint venture

Volvo Group, the multinational auto manufacturer from Sweden, has started sourcing engines for industrial applications from VE Commercial Vehicles, the equal joint venture that it has with Eicher Motors of India.


The group might also shift sourcing of engines for non-automotive products to India in the long run.

As of now, the company manufactures the 5-8 litre, medium-duty Euro VI engines exlusively in India, to be used in automotive applications for Volvo's European business.

The 5- and 8-liter engines are certified for Bharat Stage III emissions standards and can be used for several applications like construction equipment, agricultural and forestry machinery, crushers and screeners, pumps and cranes.

However, as per two people in the know, the company is planning to make India the main base for manufacturing engines for all its industrial applications.

VE Powertrain, one of the five business verticals of VE Commercial Vehicles, is already exporting 2,000 engines per month to Volvo AB for automotive applications.

Other than engines, Volvo AB might also begin overseas sales of light duty UD Trucks from later this year, which would be built in its Pithampur plant in Madhya Pradesh.

The trucks that would be sold in the Indonesian market are under trial and shipments will begin later this year.