Eicher targets more exports; 15% of total sales within 5 yrs

Tags: Companies
VE Commercial Vehicles Ltd (VECV), the joint venture between Sweden's Volvo Group and Eicher Motors, is revving up export plans from India and exploring new global markets, aiming up to 15 per cent of total sales to come from overseas within five years.

The company, a 50-50 JV between the two partners, will also leverage on Volvo's distribution network in Africa, Middle East and South East Asia for selling the Eicher range of commercial vehicles.

"With our Pro Series of products coming in, we are ready to increase our exports. We have taken a decision to expand export of Eicher brand to South East Asia, Middle East and Africa. Our aim is to have about 15 per cent of total sales from exports in 3-5 years," VECV Chief Executive Officer Vinod Aggarwal told PTI.

He said the company is even ready to enter left hand drive markets.

In 2013, VECV had exported 3,300 trucks and buses which constituted 8.1 per cent of its total sales volume.

Aggarwal said the company is looking beyond Sri Lanka, Bangladesh, African countries like Ghana, Tanzania, Ivory Coast and Kenya to increase exports.

When asked if the Eicher brand could be sold in developed markets like Europe, AB Volvo, India Joint Venture Senior Vice-President Philippe Divry replied in the negative.

"Eicher is the first brand (within the Volvo portfolio) to come from an emerging market (India), which will help in serving similar markets but we don't have any plans to market the brand in Europe today," Divry said.

He said the future export plans include leveraging the Volvo Group distribution network in Africa, Middle East and South East Asia for export of Eicher branded vehicles.

Aggarwal said Eicher has been developed as a brand meant to be in the volumes market with modern technology but remain affordable.

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