Companies & Sectors
Volvo to export 'Made in India' buses to Europe
Swedish transport major Volvo will export buses made in India to Europe initially and global markets subsequently, a top company official said on Tuesday.
 
"We will be the first bus company to export to the European market from India, taking advantage of lower manpower costs and neutral duty," Volvo Buses Corporation president Hakan Agnevall told reporters
 
Volvo entered India 15 years ago, ostensibly to foray into high-end truck segment, but got into the luxury buses with first move advantage as domestic rivals Tata Motors and Ashok Leyland have been contended rolling out ordinary buses for cities and semi-luxury coaches for inter-city and inter-state routes.
 
"Besides lower manpower cost and minimal overheads, we will avail customs duty exemptions on import of engines, components and accessories used in making buses for exports at our factory near here," said Volvo Buses vice president Akash Passey.
 
Volvo's Indian subsidiary has invested an additional Rs.400 crore in doubling its installed capacity at its Hoskete plant, 40 km from Bengaluru, to 1,500 units per annum. It employs about 1,000 people.
 
"As the country's passenger transport market has been down over the last couple of years due to various factors, including recession, we could not fully utilise the production capacity as the demand or order was for 600-800 buses per annum," said Passey.
 
Volvo India has been exporting luxury air-conditioned buses to South Asian countries like Bangaldesh, Maldives and Sri Lanka since 2003 and to South Africa since 2011, for multiple services, including inter-city, inter-state, long distance and within cities.
 
Besides here, the company has a manufacturing base in Shanghai, Bangkok and Taiwan.
 
"It's a milestone for us to export buses from India to developed markets in Europe though we are a European company and has a major presence there with a couple of manufacturing plants in the continent," said Agnevall.
 
The type of luxury buses to be exported will be Euro-6 complaint for mass rapid transportation in European cities, where demand is about 5,000 units per annum.
 
"We will use India as export hub overtime for developed markets like Europe, leveraging our manufacturing presence, with a strong vendor base," Agnevall added.
 
By focusing on exports, the Indian subsidiary will also be able to face the cyclical domestic market demands, which have been linear over the years due to economic slowdown and lower orders from state-run corporations and private operators.

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General Motors India to recall 155,000 vehicles

American automobile major General Motors' Indian arm said on Monday it will recall 155,000 units of Chevrolet Spark, Beat and Enjoy to resolve a snag.
 
In a statement, General Motors India said it is voluntarily recalling 155,000 units of Chevrolet Spark, Beat and Enjoy models rolled out between 2007 and 2014 to address a potential safety issue for a remote keyless entry accessory issue.
 
"If there is a potential issue, we ensure that it is corrected as soon as possible as part of our complete commitment to customer satisfaction," its president and managing director Arvind Saxena was quoted as saying in the statement.
 
The company is notifying customers individually about the recall and also how and when to bring in their vehicles for inspection and correction.
 
Alternatively, customers can also contact their nearest Chevrolet dealership and schedule an appointment for vehicle inspection and correction. The affected vehicles will be repaired free of charge, the company said.

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COMMENTS

TIHARwale

2 years ago

this is a gimmick. let the company declare how many vehicles were actually serviced by them for this recall drive. if the number exceeded more than 100 then it speaks very poorly about their QC at manufacturing stage

Russia's Rosneft inks deal for 49 percent stake in Essar Oil
Russian oil major Rosneft has signed an initial "non-binding" memorandum with the Ruia family-led Essar group to buy 49 percent stake in Essar Oil's Vadinar refinery in Gujarat.
 
The deal has come at a time when India is taking part in the ongoing BRICS leaders' summit in Russia. 
 
The agreement, signed on Wednesday, is subject to regulatory approvals.
 
Rosneft and Essar Oil last December signed a contract for the Russian firm to supply 10 million tonnes of oil a year for 10 years.
 
"The performance of the terms of the signed documents will have a substantial impact on the scale of economic cooperation between Russia and India. The goods trade between the two countries will grow by more than 50 percent," Rosneft chairman Igor Sechin said in a statement.
 
Rosneft and Essar also plan to expand the Vadinar refinery annual capacity to 45 million tons by 2020 from the current 20 million tons, the statement said.
 
The deal includes a retail chain of 1,600 stations across India.
 
As of June 2015, Essar had on its books a debt of Rs.17,000 crore.
 
Last April, Essar Oil received the Reserve Bank of India's approval to raise external commercial borrowings up to $2.27 billion, to replace its rupee debt with low-cost dollar loans.
 
Essar said it has "signed a non-binding Term Sheet with regard to Rosneft's participation in the equity capital of Essar Oil Limited with a share of up to 49 percent."
 
The proposed transaction is conditional upon various factors such as due diligence, determination of the transaction price, execution of definitive transaction documents and receipt of requisite approvals, Essar said in a statement.
 
"Appropriate disclosures shall be made in accordance with applicable law as and when any definitive steps in relation to the aforesaid are undertaken," it added.

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