Volvo to launch low-cost truck for China

Volvo is working on reaching the Chinese heavy truck market by developing a low-price truck.

Currently, Volvo has 0.3 percent of the enormous Chinese heavy truck market, writes the Ny Teknik newspaper.

By halving the price for a truck, which are now between 700,000 and 800,000 kronor ($118,000 and $135,000), Volvo hopes to compete with Chinese manufacturers.

The Chinese dominate their home market and their heavy trucks cost around 250,000 kronor.

With less equipment, fewer horsepower, and less technical refinement, Volvo plans to lower the costs of its trucks.

“We’re taking what’s essential from the West, but will make it in an Asian way,” said Joachim Rosenberg, head of the Volvo’s truck operations in Asia, to Ny Teknik.

Plans are to have the truck manufactured in Asia and to have it on the market in “one to four years”.