Volvo to focus on rental business

Volvo Construction Equipment India is planning to focus on rental business in collaboration with its dealer network in addition to its sales business.

Speaking in connection with the launch of EC 140 BLC hydraulic excavator in Hyderabad and the inauguration of new integrated sales and service outlet by its Andhra Pradesh dealer, Mrityunjaya Singh, vice-president of Volvo Construction Equipment, said the scope for rental business for construction equipment vehicles was fast growing in India, the market potential of which is estimated to be about 15,000 units as compared with the existing 6,000 units.

To increase equipment rental business, Volvo would provide low-cost finance to dealers.

According to him, the company is also planning to set up a training facility next year for construction equipment operators at its Bangalore manufacturing plant at an investment of $5 lakh.

The training centre, planned in 8.5 acres, will have simulation audio-visual facilities, besides an auditorium.

At the existing training facility for truck and bus drivers, the company has so far trained 11,000. Volvo's construction equipment business in India touched Rs 1,000 crore turnover during the last calendar year.