Volvo to source components worth 70 m euro from India

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Swedish commercial vehicles maker Volvo will buy components worth 70 million euro from the Indian market this year. These components will be used in products manufactured in Europe and America, a senior company official said.

Eric Leblanc, the India head of the commercial vehicle maker, said that the quality of components produced in India was good and a low price made them very competitive. “We expect the sourcing to be around 70 million euro this year, that will be at similar levels to what we did last year,” Leblanc said.

He said that the components sourced include parts for castings, forgings, plastic parts and axle shafts. Bharat Forge is one of the major suppliers to the company that would use the parts on its Volvo brand of trucks apart from those of group companies like Renault and Mack.

Local vendors are increasingly manufacturing high quality components at low manufacturing costs and this is gradually making India a sought-after sourcing destination for auto companies that are constantly looking to cut down manufacturing costs.