Volvo Signs Mou For Unit In Karnataka
Swedish automobile company Volvo has signed a memorandum of understanding with Karnataka for a vehicle assembly plant. The initial investment in the plant is envisaged at $86 million.
A feasibility study is underway for Volvos plan to produce buses and trucks which can ply underground too. These vehicles would take some load off the main motorways.
Volvo India Ltd, a fully-owned subsidiary of the Swedish company, will start production of trucks at its manufacturing plant in Bangalore next year. Volvo was one of the first two foreign automobile majors allowed in 1996 to set up wholly-owned subsidiaries in the country.
Although production will start next year, we have not decided which type of trucks to bring to India and a feasibility study is underway for that, Volvo Truck Corp general manager, industrial operations (project India), Mikael Schill told Business Standard yesterday during the India-European Union Auto-motive Business Forum in New Delhi.
Volvo manufactures trucks which range from six-litre capacity to 60-litre capacity.