VE Commercial Vehicles Ltd (VECV), which is a 50:50 joint venture between the Volvo Group and Eicher Motors, is laying big bets on Karnataka.
Shyam Maller, senior vice president, sales & marketing, VECV, said though the South as a market for commercial vehicles has not performed well last year, a state like Karnataka is extremely important.
"Karnataka accounts for 7% of our all India volumes," said Maller.. VECV claims to have a 22% share in the bus segment in Karnataka, and 39% share in the trucks segment.
VECV, which was formed in July 2008, manufactures Eicher branded trucks and buses from its plant in Pithampur in Madhya Pradesh.
In 2013, the company sold over 37,000 units of buses and trucks in the domestic market, while exporting 3, 300 units.
VECV's competitors in the domestic market include Tata, Mahindra, Ashok Leyland.
"This year we hope to cross the sales numbers of last year," said Maller, while speaking during the launch of the Eicher Pro1000 and Eicher Pro3000 series of light and medium duty trucks in Bangalore.
According to Maller, the new trucks will meet the needs of the emerging mid-premium market segment, which demands vehicles of higher power and durability. In addition, the newly launched trucks will also address the mass-market segment.
VECV's Eicher Skyline Pro Buses, which they have recently launched in Gujarat, is expected to soon make its way into Karnataka and the South.
VECV is having strong expectations from the new government at the centre, and feels the moves by the government pertaining to infrastructure spending in the budget will have positive effects on commercial vehicles.
"The overall business sentiment is becoming better. Inflation has just dropped to lower levels, which is again a positive indication. But the low monsoon has played spoilsport. If the rains improve going ahead, it will present a better picture," said Maller.
The company also has strong expectations from its exports, which it primarily does to the Saarc nations and Africa.
"We are working towards increasing our presence in the Middle East and Africa regions. Developed economies have fuel efficiency standards that are much different from India. So right now we are looking at Africa and the Middle East for exports," said Maller.