rediff.com

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  

Rediff News  All News 
Rediff.com  » Business » Volvo India plans to roll out fleet mgmt service

Volvo India plans to roll out fleet mgmt service

November 29, 2004 09:59 IST

Volvo India is planning to introduce its global fleet management facility in India following the development of the telecommunication network all over the country, informed Ulf Nordqvist, managing director of Volvo India.

Volvo's fleet management system is in place in other countries where the group sells trucks. However, the company decided not to introduce the service in India as the telecommunications network here did not cover the highways and did not posses the extent that was needed for the system to work optimally.

Fleet management is a high-technology service that helps customers and users track their vehicles, invoice and follow up parameters besides maximising returns on investments.

"There is a strong case that the Indian market is now ready for such a service," Nordqvist said.

He, however, ruled out the roll-out of the famed Volvo global financing service in the Indian market in the near future. "Finance is not an issue in India -- we have good tie-ups with financiers here," he said.

Volvo India has been acting more as a transport consultant for its clients, claimed Nordqvist.

"Volvo has been providing a transportation solution for clients that delivers much superior return on investment and high savings because of the lowest cost per tonne kilometre. Volvo for example offers trucks matching the need of our customers and integrating it with the design and dimension specifications of excavators for 100 per cent utilisation and minimum wastage," he added.

Tailor-made enhanced capacity of freight carriers had significantly reduced the operation cost substantially for clients, Nordqvist said.

In response, Volvo India has decided to enhance its dealer network in India significantly. Nordqvist on Sunday inaugurated a vastly enlarged workshop in Kolkata making it the centre of the regional hub and spoke service and marketing network.

The workshop offered single and multi container workshops, permanent service and parts centre, and a mobile workshop with key parts and tools in the region.

Besides this hub service and parts centre, Volvo has also set up several customer site support points across the East region including West Bengal, Jharkhand, Orrisa, Bihar and north-eastern states.

Volvo trucks engine are typically in the range of 380-460 horse-power, significantly higher than those manufactured by the competitors.

As for Volvo buses, these were now available in South, West and North Indian states but not in eastern India. Nordqvist said Volvo would be entering the eastern market with its buses soon.

"With so much of infrastructure activities and road construction taking place in this region, it is the ideal time to get into this market. Long stretches of roads from Kolkata to Siliguri and several new highways would be ideally suited for Volvo buses. Expect an announcement very soon," he added.

Volvo's engine business had emerged as another major revenue earner in India. "We have been selling high-power marine engines to the Coast Guard and Indian navy. It has come up as a potential business area," said Nordqvist.
Arnab Mallick & Pradeep Gooptu in New Delhi