Volvo Group, the multinational auto manufacturer from Sweden is importing engines for industrial applications from India. These are supplied by 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.
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. The company is now manufacturing the 5-8 liter, medium-duty Euro VI engines exclusively in India which will 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.
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.
However, the company is planning to make India the main base for manufacturing engines for all its industrial applications.