* New Eicher-Volvo range to roll out by end of next year
* To begin exports of engines to Volvo Europe by mid-2013
* Global manufacturers muscling in on Indian truck market
(Adds quotes, details)
By Henry Foy and Matthias Williams
NEW DELHI, Nov 7 Eicher Motors and
Volvo AB will invest 18 billion rupees ($331 million)
over the next two years in their Indian joint venture, Eicher's
head said on Wednesday, and begin exports of engines to Volvo's
European operations next year.
Volvo, the world's number two truck maker, is among global
manufacturers, including Daimler AG, that are
muscling in on India's truck and bus industry, which is
dominated by local giants Tata Motors and Ashok
The Eicher-Volvo JV will roll out a new range of trucks and
buses built in India using Volvo technology by the end of 2013,
and look to export these vehicles to Africa, the Middle East and
South East Asia within two to three years, Eicher's managing
"It's very important for Volvo. Volvo wants to develop
Eicher because it doesn't have a brand like this in its entire
portfolio which it can take to other emerging markets,"
Siddhartha Lal told Reuters in an interview on the sidelines of
the World Economic Forum on the outskirts of New Delhi.
The joint venture is spending more than 4 billion rupees on
a factory to build 80,000 engines a year, which will be
operational by mid-2013 and supply both Eicher in India and also
Volvo's bus and truck manufacturing plants in Europe.
The Swedish truckmaker said last month that its plants in
Europe were operating at less than full capacity, and that it
saw no truck market growth in Eruopean or U.S. markets next
Eicher and Volvo have already invested 7 billion rupees in
the 50-50 joint venture, which was formed in 2008.
"We believe there's an enormous potential to transform
commercial vehicles in India," said Lal. "As a result we've been
investing tremendously in the company."
($1 = 54.4350 Indian rupees)
(Editing by Louise Heavens)