At Volvo CE, we are focussed on maximizing our customers’ profitability and success

– Dimitrov Krishnan

Managing Director, Volvo CE India

What is your outlook on the excavator market in India? What are your future plans for the market?

Since earthmoving segment is the largest in Indian construction industry, demand for excavators easily outstrips every other construction equipment. The Indian excavator market is poised to register robust CAGR numbers in the foreseeable future, thanks to sustained public investment in infrastructure planned over next 25 years and Government’s unrelenting focus on ‘Make in India’ and ‘Atmanirbhar Bharat’. As the country gears up for an overhaul of mass transportation and logistics infrastructure across surfaces, it will usher in unprecedented demand for earthmoving equipments across segments – from mining and road building to urban development and mega projects.

Volvo CE offers excavators to meet every need and any challenge. That said, Volvo CE plans to launch a new series of gen-next excavators in India in the coming years, powered by sustainable technologies. Also on the anvil are 100% electric compact excavators promising zero emissions, 10 times lower noise levels and reduced cost of ownership.

How is technology evolving in excavators in terms of: productivity, fuel efficiency, and operational efficiency?

At the end of every hard day at work, what customers really seek is a positive double impact on top and bottom lines of their businesses. Volvo CE has always been at the cutting edge of innovative technologies that boost productivity, reliability and fuel efficiency. At the heart of every Volvo excavator is a powerful engine and hydraulics framework powered by new-age technologies to boost machine uptime and operational efficiency.

The Volvo EC550E Excavator launched this year features the most advanced hydraulic system in industry. It delivers 35% productivity boost and is 22% more fuel efficient, making it eminently suitable for mass excavations and heavy-duty digging. Then there is Volvo EC300DL Block Handler (BH) Crawler Excavator, a new model custom-built for India’s quarry contractors. It features heavy-duty lower frame and toughened undercarriage components and is designed to deliver high productivity with low fuel consumption. We have recently launched Volvo EC 480D Excavator with Vibro Ripper – a patented original Volvo product featuring ‘vibro-isolation’ technology. It protects the excavator from vibration and shock while delivering at least three times higher productivity compared to breakers.

With so many added features in your machine and India being a cost-centric market, how do you maintain the equilibrium between cost and quality for your excavators?

Cost is what the customer pays. Value is what the customer gets. At Volvo CE, we are focussed on maximizing our customers’ profitability and success. We ensure this by creating tangible value across the entire portfolio of our products and services. In every interaction with our customers, we endeavour to enhance their satisfaction with trust, passion, efficiency, quality and performance. 

Rentals play key role in the growth of excavator market. How is the rental demand currently?

We find a noticeable shift in procurement of construction equipment among customers, including excavators. The concept of Equipment-as-a-Service is now firmly entrenched in construction equipment industry. Without spending too much, customers can now opt for the latest equipment along with productivity services, consultancy services, fuel efficiency services, training services and more.

Volvo CE India is introducing Equipment-as-a-Service across the country. This is bound to benefit thousands of customers, particularly sub-contractors, who may lack the resources but still need a brand like Volvo to bid and win projects in their region.

India being a vast market for CE products; how does your company propose to manage this vast market through placing a strong dealership network and distribution channel, pre- and aftermarket sales support services for users?

Volvo CE is continually looking to strengthen its distribution channel and dealer network across India. The Company has forged long-term relationships with several trusted partners across the length and breadth of the country. Volvo CE operates on the principles of mutually-rewarding association with its dealer and distribution partner firms – sharing their concerns on business profitability, imparting technical training and encouraging regular feedback on products and services, conducting annual meetings and rewarding best performers from time to time.  

What are your market challenges and suggestions for improving the market for excavators?

Managing competition and customer expectations in the highly competitive excavator market in India is never easy, even in the best of times. While opportunities galore for excavator brands in India to grow market share, there are serious challenges the industry faces in terms of input cost inflation, electronic component shortages and supply chain issues. These are affecting pricing, margins and timely delivery of excavator products.

The domestic construction equipment industry, excavator manufacturers in particular, could do with a Production-Linked Incentive (PLI) Scheme from the Government. We believe it will not only ramp up domestic manufacturing and boost exports but also encourage global OEMs and precision component manufacturers, to set up manufacturing base in India. It will be a win-win for both industry and customer with better margins for industry and timely delivery at reduced costs to customers.

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