New Delhi, Dec 16: Sweden's A B Volvo is looking at outsourcing components worth 200 million Euros from India over the next five years and also contemplating establishing a research and development centre in the country to leverage the high-quality engineering prowess. Volvo India managing director Ulf Nordqvist said India occupied an important position in the Swedish automaker's overall operations.
''This year we expect the sourcing to be in the region of 15 million Euros and with quality manufacturing here on the increase, it is expected to grow exponentially,'' the Volvo India chief said.
A B Volvo has said as part of efforts to cut costs, it would source components worth one billion Euro from markets like China, Mexico, India and Brazil over the next five years.
''I can say, with my experience so far with component makers here who are gradually producing high-quality products, that Indian manufacturers can corner 20 per cent and even more of this order,'' Mr. Nordqvist said.
Currently, the company is sourcing castings, forgings and various chassis, engine and brake parts from India.
Mr. Nordqvist said that with time, A B Volvo was even contemplating setting up a research and development base in India.
''There is high potential in India as far as engineering is concerned and certainly we would like to leverage the country's strength in this field some time in the future.
''Also, A B Volvo is sourcing IT-related back-office work from India for its facilities in France, United States as well as Sweden,'' he said.
He said Volvo India was also looking at increasing the local content in the buses and trucks the company offers in India. ''Presently, our trucks have around 35-40 per cent localisation while it is over 60 per cent is buses. Bureau Report