Volvo
In order to supplement global operations in France, US, Brazil, and Sweden, the Volvo Group has recently decided to consider India, which is fast emerging as a global sourcing site, to be its major destination for Volvo auto parts.
For 80 years, Volvo has always placed quality, both for its products and services, at the top in order to satisfy a customer’s needs and expectations in the brand. To answer for this call, the Swedish commercial maker Volvo has placed orders worth $80 million with a top caliber Indian auto component firms in major cities this year. Transactions like this is considered to be one of the company’s strategy for growth as well as to serve as an answer for the increasing demand for auto parts world wide. Increasing Volvo’s presence in markets such as in Asia and Eastern Europe, is believed to reap abundant development.
Making this benchmark possible is Volvo 3P, which is a Volvo business unit responsible for product development, purchase, and product planning. Volvo 3P will provide the necessary assistance to its global organization for sourcing from Indian suppliers. Assisting Volvo’s development hub’s like Allentown, Gothenburn, Greensboro, and Lyon is the business unit’s primary responsibility. Other hubs include Brisbane, Curitiba, and Shanghai.
Original equipment manufacturers in India supply auto parts to all three truck brands within the Volvo Group of Volvo, Renault, and Mack, as well as Volvo Bus, Volvo Construction Equipment, and Volvo Penta. Drive axles, chassis parts, and engine components are just some of the Volvo auto parts being supplied by Indian auto parts manufacturers.
“Volvo believes emerging markets have a strong potential to serve global demand. These markets have been identified as they are quality conscious besides offering a relative cost advantage,” said Volvo India managing director Eric Leblanc.
From a projected compound annual growth rate of 14% in the automotive components industry, revenues from engine parts, drive transmission, and steering parts are expected to bulk up that growth rate. Currently, Europe and US are the top two buyers of Volvo auto parts from India, respectively. Africa, Asia, and the Middle East also purchase their auto components in India.
Group sales of Volvo products and services are conducted through wholly owned and independent dealers. The global service network handles customer demand for spare parts and other services.
