Heavy truck maker Volvo has decided to put its plans to introduce models from the Renault and Mak stables on the backburner.
AB Volvo acquired Renault and Mak companies in 2001 and was planning to introduce their models in India sometime ago.
But the plans have been shelved as the company wants to focus completely on selling Volvo trucks in India.
Sources said Renault and Mak truck models could create some confusion in the Indian market because Volvo is yet to acquire a sizeable market share here.
Volvo has also streamlined its operations in India in order to consolidate and expand its presence in the country.
According to market sources, Volvo India expects to post revenues of around Rs 305 crore during the current calendar year. In 2001, it posted revenues of around Rs 256 crore and in 2000, around Rs 205 crore.
It has set a target of 20 per cent revenue growth for 2002. Volvo has now decentralised its operations in India.
More powers will be delegated down the hierarchy along with responsibility attached to each manager.
Volvo India has also decided to go in for a series of joint ventures with local partners to source components instead of investing in its own facilities, though these components will have to pass stringent quality standards set by its parent company in Sweden.
Currently, the indigenisation level is around 40 per cent. Volvo has so far sold around 1,300 trucks, 50 buses and 2,000 engines in India. The company has till now introduced four different models of trucks.
Multi-axle FH12 and FM7 are its largest selling truck models in India. The company has so far invested around Rs 300 crore out of the Rs 525 crore earmarked so far.
