Volvo group eyes 50 pct of Asian truck business

Volvo Group of Sweden said it is eyeing 50 percent growth of its truck business in Asian countries after it launched a new heavy-duty UD truck range with Dongfeng on Tuesday to venture into the mid- to high-end truck segment in China - the world's largest heavy-duty truck market.

"The brand under the name Quester is specially designed for emerging growth markets in the world," said Joachim Rosenberg, executive vice-president of group trucks sales and marketing for Volvo's Asia and Pacific region. "The plant here in China will support both local and export demand."

The Hangzhou-based plant has a capacity of 5,000 units and the first delivery is scheduled for the second quarter of 2014.

Rosenberg also said Volvo aims to expand its truck unit in China through its venture with Dongfeng, which it acquired when it bought UD Trucks from Japan's Nissan in 2007.

Volvo will also continue to import Volvo and Renault trucks into China and to develop its construction equipment business in the country.

During 2012, the Chinese market for heavy-duty trucks totaled around 636,000 vehicles with a further 290,000 medium-sized vehicles.