Mining ban hits Volvo Trucks sales

Hyderabad: VE Commercial Vehicles (VECV), a joint venture between Sweden’s Volvo Group and India’s Eicher Motors, on Friday stated its sales declined around 36 per cent in the past two years, owing to the ban on iron ore mining and sluggish economic conditions in the country.

VECV which has a plant in Bangalore with annual production capacity of 2,000 units predominantly caters to the mining sector in the country. “Our sales have declined from 1,100 units in 2011 to 700 vehicles in 2013. Of these sales, mining segment accounted for around 950 units and 650 units respectively,” Vinod Aggarwal, CEO, VECV, told media persons here.

However, he is optimistic that sales will increase this year as industrial production is likely to pick up. The company is also eagerly waiting for the full resumption of the mining activity across the country.

Meanwhile, the commercial vehicle maker has organised Volvo Trucks India Fuel Watch 2014 competition at Manuguru in the Khammam district of Telangana recently.
Twenty four best drivers from key Volvo tipper customers operating in mining segment across the country participated in the annual fuel efficiency competition, which is being held to educate drivers and other stakeholders on the need for improving fuel efficiency.

The participants were selected through rigorous qualification process and R Satyanarayana, driver from BGR Mining & Infra Pvt Ltd, walked away with top honours.
“At Volvo Trucks, we give special emphasis to superior driving skills because it plays an important role in achieving better fuel efficiency and increased profitability,” said Aggarwal.