Volvo CE increases equipment sales in Russia 80% in 2006

• November
• 22

5:27 am Trucks

Volvo Construction Equipment, or Volvo CE, increased sales of specialized equipment in Russia by roughly 80% in 2006, and the company is planning to expand further on the Russian market, Volvo CE general manager Tomas Kuta told Interfax.

About 500 pieces of construction equipment were sold in Russia in 2006 compared to 280 pieces a year earlier. Volvo leadership has decided to expand sales in Russia over the next five years in order to eventually set up the company’s own production in the country, he said. Sales growth is planned at 60%-70% annually. “In five years, I hope we can sell up to 2,000 machines in Russia,” he said.

“We will have to launch production of certain types of our products in Russia in five years. We’re not talking about launching the full line of our equipment here,” he said. For now, he said the company has only decided to set up production in Russia. It is currently analyzing possible options, he said.

Volvo CE plans to sell 700-900 pieces of equipment in Russia in 2007, he said. The Russian market is one of the world’s largest regions in terms of sales of specialized construction equipment, he said.

The Russian market for specialized construction equipment is growing at extremely rapid rates, he said. Imports of such equipment grow by about 70%-80% per year, he said. Kuta said Volvo CE managers in Moscow will now be responsible for the Belarussian and Ukrainian markets, where partners are currently being sought out.

Volvo CE is part of the Volvo Group and produces such specialized construction equipment as loaders, excavators, dump trucks and power graders.