GST Impact – Volvo Trucks to enter long haul transportation

Volvo Trucks, which is currently holding a lion’s share in mining tipper segment and which is very strong in ODC transportation, is planning to enter the premium ultra long distance transportation segment. GST was originally planned for rollout from April 1st 2017. But differences between the centre and the states, especially over the sharing of powers, has delayed the final approval for supporting legislation for GST, a tax reform which will for the first time bind the country into a common market. States like Kerala and West Bengal had sought a delay in the implementation of the tax, arguing that state finances cannot withstand the double whammy of demonetization and GST. So GST is likely to be implemented from July 1st 2017.

In an interview to PTI, Volvo Group Chief Sustainability Officer and Chairman of the Board of Volvo India, Niklas Gustafsson said “With GST coming in and changes in taxation, there will be positive changes in the transport sector and we would like to play a role, for instance in the long haulage transport, which would be more effective now with cross—border traffic between various states”.

Volvo FH

“In mining sector, value proposition of Volvo trucks is very strong. Our efficiency and productivity was 30 per cent more than competition but when it came to long haul transportation due to interstate borders, the advantage disappeared because of the long wait at the borders.” added Mr. Kamal Bali, Volvo India Managing Director. With GST roll out round the corner promising seamless movement of trucks across state borders, Volvo trucks would be able to cover a lot of distance.

Volvo FH 3

“Today, trucks in India do an average of around 250 km daily and that can go up to as high as 800 kms. That is where Volvo technology will come into play,” Bali said. It’s to be noted that Volvo trucks follows dual strategy of using Volvo and Eicher brand of trucks. Currently Volvo trucks has the premium trucks in its portfolio and is popular in deep mining and ODC movement. The portfolio includes FMX tipper range, FH and FM tractor range. FH tractor rage which starts from 440hp power is more suitable for long haulage, we may expect more variants and options from the current range.

Volvo FH 2

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