Volvo India Ltd plans to double its outsourcing of components to euro 20 million from its facility at Hoskote on the outskirts of Bangalore this year, a top company official said on Wednesday.

"Last year we exported components valued at about euro 10 million and this year, the target is euro 20 million," Volvo India Pvt Ltd managing director Ulf Nordqvist told reporters in Bangalore at the launch of Volvo's new generation heavy trucks in the country.

"Global outsourcing of components from India has already begun in a big way," he said, adding IT and engineering services outsourcing was also being done by the Swedish auto major.

A wholly-owned subsidiary of AB Volvo, Sweden, the company is introducing its global heavy duty trucks which are Euro III compliant for India's growing commercial vehicle segment.

The new models in the FM9 and FM12 series offer higher horsepower (300hp and above), ergonomic cabin and a reliable drive line. They have been tailored to Indian conditions to provide additional safety, extra haulage and efficient fuel consumption.

The five-year old Bangalore-based firm is also drawing plans to enter the lucrative medium commercial vehicle segment to transport agro-processed food and perishable fruits/vegetables, in which India is the world's third largest producer.

Nordqvist told the media in Bangalore that the new models would be replacing the earlier version of Euro II trucks, tractors and tippers in the B7R series, which have been on the roads during the last couple of years.

"Priced between Rs 29 lakh (Rs 2.9 million) and Rs 35 lakh (Rs 3.5 million), the new models have been adapted to Indian customer needs based on our experience in long haul and off-road applications," Nordqvist stated.

The latest air-conditioned luxury trucks are being introduced in India as part of Volvo's global product launch after extensive design and development costing Rs 3000 crore (Rs 30 billion). They come in 4, 5, and 6-axle options with different combinations to address specific customer needs.

Though the Indian government has not yet made Euro III emission norms mandatory for the transport sector, Volvo is ahead of its competitors in the heavy-duty commercial vehicle segment with these models.

"By introducing the latest international products, Volvo intends to raise the bar in the Indian commercial vehicle industry and bring in global transport practices to the sub-continent," Nordqvist declared.

With the quadrilateral super highways and north-south, east-south corridor coming up fast across the country and a flurry of activity in the core sectors of economy, including infrastructure, the transport sector for goods and commuting people is set to witness 10-15 percent volume growth in the coming years.

"By 2007, we intend to expand our operations and product portfolio to cover every segment of transportation, especially the fast-moving food products, including perishable fruits and vegetables, which are substantially being wasted for want of adequate transport facility, connectivity and basic infrastructure to meet the domestic and export requirements," Nordqvist told rediff.com.

In spite of economic downturn and recession in the transport sector during the last couple of years, Volvo has managed to post 10 per cent growth, and posted a turnover of Rs 280 crore (Rs 2.80 billion) last calendar year on a cumulative investment of Rs 300 crore (Rs 3 billion) in its Indian operations.

Though still focused on niche segments, the subsidiary's truck, AC buses and construction equipment divisions are upbeat about registering around 15 per cent growth during the current calendar year in view of good monsoon, massive infrastructure projects and all-round growth in the economy.

"About 40 per cent of our turnover comes from the truck division, 35 per cent from the world class Volvo buses and the balance (25 per cent) from the construction equipment," company's sales and marketing head Mansoor Ahmed disclosed.

Apart from outsourcing components, IT and engineering services from India to its $20-billion parent company's worldwide operations, Volvo India has started exporting its state-of-the-art buses in the Saarc region to countries like Bangladesh and Sri Lanka.

The company has cumulatively sold about 1500 trucks, 160 buses, 600 units of construction equipment and 2500 Penta diesel engines since its entry into the domestic market in 1998.

Volvo officials have claimed that the subsidiary had achieved operational break-even last calendar year.