Volvo to Invest Rs 400 Crore, Set up R&D Centre in India

Swedish vehicle-maker Volvo will invest Rs.400 crore to set up a research and development (R&D) centre and expand capacity in India to earn $1 billion in revenue from its operations in the country by 2015.

"We are looking to sell 5,000 buses in India by 2015. For this there will be an investment of Rs.400 crore which will include a research centre and capacity expansion," Hakan Karlsson, president and chief executive, Volvo Bus Corporation, said.

Karlsson said the R&D centre and sourcing of parts locally would help in developing buses for India and for export purposes.

Currently the company sells around a 1,000 buses in the country to the private sector, institutions and to city transport departments. India would be the second largest market for the company after China by 2015.

The company added that it will showcase the world's first commercially viable hybrid bus -- Volvo 7700 Hybrid at the Delhi Auto Expo.