Volvo for 30% India engines for export

The Volvo Group is looking to expand the size and responsibility of India hub, he said, adding, the swedish truckmaker expects the Indian market to grow faster than other regions, given the proposed investment and potential in this country.

Officials added that the Volvo Group in India constitutes three legal entities -- Volvo India Private Limited (VIPL) and Volvo Buses India (VBI) and VECV.

The automaker will work with Eicher to accelerate localisation of parts in the engines produced at the plant in Pithampur, central India, Persson said.

The Swedish truckmaker's plants in Europe were operating at less than full capacity, the company said last month, and it forecast no truck market growth in European or US markets next year.

Volvo, which makes trucks under the Renault, Mack, UD Trucks and Eicher brands as well as its own name, said last month that operating profit for the quarter to September halved from a year previously, as new orders during the period fell 25 percent.

The Volvo Group will spend 20 billion rupees ($363.83 million) in India, Persson said without providing a timeline, in addition to the $330 million that Volvo and Eicher will spend on the 50-50 joint venture over the next two years.

Volvo is also one of a slew of global players, including major rivals Daimler AG and Scania AB, racing to grab a slice of India's buoyant truck and bus market dominated by Tata Motors Ltd and Ashok Leyland Ltd as traditional markets slow.

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