Monday December 3, 2012
Volvo fuelled by infrastructure sector demand
By THOMAS HUONG
KUALA LUMPUR: Volvo Malaysia Sdn Bhd is looking forward to rake in record sales this year, as major infrastructure developments in the country have fuelled strong demand for its commercial vehicles and construction equipment.
Volvo Malaysia (VM) is part of Volvo Group, one of the world's leading manufacturers of trucks, buses, construction equipment, and drive systems for marine and industrial applications.
VM has achieved sales of 286 units and a 43% market share in the European heavy duty truck segment (16-tonne and above) as of end-October (compared with a 32% market share a year earlier).
The company's business director of Volvo construction equipment, Brandon Ross, said sales of its hydraulic excavators, articulated dump trucks, wheel loaders and road rollers had reached 250 units as at end-October.
“Our sales of construction equipment has increased by 40% as of end-October, compared with the same time last year. Revenue from our part sales, and vehicle service and maintenance contracts had also increased substantially,” Ross told StarBiz.
Ross said this year, sales had been driven by activities in the quarrying, earthworks and mining sectors as well as infrastructure projects such as Petroliam Nasional Bhd's (Petronas) RM60bil integrated refinery and petrochemical complex, known as Rapid, in Pengerang, Johor.
Rapid is expected to be commissioned by end-2016.
In November, VM sold 30 units of articulated dump trucks in a deal valued at RM48mil to an earthworks contractor for the Rapid project.
“We are growing so rapidly. The biggest challenge is finding the manpower we need.”
Ross also said next year, VM would aim to increase its penetration in the forestry segment, particularly in Sarawak and Sabah.
VM is also aiming to expand and upgrade its dealers' network in Malaysia, and grow its fleet of breakdown service vans.
Meanwhile, VM managing director Mansoor Ahmed said a new state-of-the-art dealer facility would be set up in early 2013 in Kuantan, followed by similar operations in Sibu, Sandakan, and Port Klang.
Mansoor pointed out that VM had augmented its breakdown support with fully-equipped vans, and had a response rate of under two hours.
“Also, we have started fast repairs at the Shah Alam workshop for a quick turnaround time for trucks coming in for repairs. This year has been a great year for us where we had very strong customer engagement activities like Fuelwatch, launch of the Globetruckers Club and we have focused on improving our network, responsiveness and support to our customers,” he said.