China and India are expected to become the driving forces for Volvo's business expansion in Asia, its vice president and Chief Financial Officer Par Ostberg said on Sunday.
He said more business sectors would shift to Asia with more investment pouring into China and India, during an interview on the sidelines of the Boao Forum for Asia in China's southern Hainan Province.
He said China was of vital importance to Volvo, the world's leading motor and construction machinery producer. The company had studied Chinese policy very early in effort to secure more deals amid the Olympic construction boom and the country's fast infrastructure renovation. This was why the Swedish giant had invested heavily in the country in recent years.
Ostberg said he was satisfied with Volvo's performance in China, hoping more breakthroughs could be made in truck sales despite the fierce competition.
Volvo has been dedicated to boosting its clout in the country, as evidenced by its controlling 70 percent stake in Shandong Lingong Construction Machinery Co. Ltd. and joint ventures in Shanghai and Xi'an.
It recently acquired a 96 percent share of Nissan Diesel, which had formed a joint venture with China's renowned motor producer Dongfeng.
Volvo's China sales revenue hit 1.5 billion U.S. dollars last year.
(Xinhua News Agency April 14, 2008)
