Volvo: Successful joint venture behind strategic launch of Eicher Pro Series

  Volvo: Successful joint venture behind strategic launch of Eicher Pro Series

Business Wire

GÖTEBORG, Sweden -- December 2, 2013

Regulatory News:

Volvo (STO:VOLVA)(STO:VOLVB):

On December 2nd, VE Commercial Vehicles Ltd (VECV), a joint-venture between
the Volvo Group and Eicher Motors Ltd, launched the Pro Series, a new range of
trucks and buses developed specifically for India and other selected growth
markets. The Pro Series includes 11 new products (trucks and buses) and covers
the entire 5 to 49 ton gross vehicle weight (GVW) range, setting a new
standard among customers with high demands on profitability, flexibility and
driver effectiveness.

“India is a very important market to us and the Eicher brand is an integral
part of the Volvo Group’s strategy to expand in Asia and other growth markets.
With the launch of the Eicher Pro Series, our already strong joint-venture
enters a new chapter. The range presented by VECV today positions Eicher on a
new level, capturing growth opportunities in markets with significant,
untapped potential”, says Olof Persson, CEO and President of the Volvo Group.

The trucks and buses unveiled today are the result of the joint-venture’s
efforts over the last five years. Customers in India and other growth markets
are increasingly interested in more modern and effective products and rising
fuel costs create a heightened demand for fuel efficiency. The Pro Series is
developed to meet these demands by delivering best-in-class fuel economy,
higher loading capacity, superior uptime and leading overall vehicle life time
profitability in the targeted customer segments.

“The combination of the Volvo Group’s leading technology with Eicher Motor’s
Indian heritage and frugal cost expertise has created a new range that will
support customers in achieving even greater productivity, profitability and
prosperity. India is aggressively investing in infrastructure. Improved roads
and more effective logistics chains put new and higher demands on vehicles and
that leads to new opportunities for Eicher”, says Joachim Rosenberg, Executive
Vice President, Group Trucks Sales & Marketing and JVs APAC.

The Pro Series is in a prime position to meet these requirements and will
support and drive Indian modernisation. In addition, and for the first time,
Eicher will have dedicated export variants for e.g. South East Asia and Africa
that will generate further growth for VECV.

The Pro Series includes 11 new models of trucks and buses, covering the entire
5 to 49 ton gross vehicle weight range. While continuing to address the Indian
mainstream market, the new Eicher range also contains models that enable entry
into the evolving customer segments in India that require higher power and/or
torque offerings. As such, the new vehicle range contains models that will be
powered by engines adapted from Volvo Group technology with output up to 280
hp, offering high fuel efficiency, reliability and durability.

The VECV industrial facilities have been upgraded and modernised to produce
this new range. The investments include; new assembly lines, a cab factory and
cab painting workshop as well as a world-class engine factory. VECV will start
production of the Eicher Pro Series in February 2014.

December 2, 2013

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Contact:

Volvo
Karin Wik
tel +46 31 66 12 32