Oct. 24 (Bloomberg) -- Volvo AB, the world’s second-largest producer of heavy-duty vehicles, is planning investments in India and China to bolster its truck business and meet demand from those markets, an executive said.
The truck division’s investments in China will include opening research and development centers, and expanding distribution and retail, Volvo Group Senior Vice President Par Ostberg said in an interview in Singapore today. In India, Volvo plans to build plants such as one for medium-duty engines.
“The positions that we have now in very strongly growing India and China market would help to capture the market in the years to come,” said Ostberg, declining to provide specific estimates. “With the positions we have now, we will be able to capture the growth that we believe will come from the emerging markets and Asia.”
Volvo is only seeing a “very small impact” on Chinese demand from rising interest rates, said Ostberg, who joined the Volvo Group in 1990. The central bank has raised interest rates three times in 2011 and ordered lenders to set aside a bigger portion of their deposits to curb inflation that’s near a three- year high.
--Editors: Young-Sam Cho, Subramaniam Sharma
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