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21-01-2008 The
world's leading commercial vehicle maker Volvo is expected to double the size
of its parts storage in China as demand booms. Volvo's
wholly-owned Volvo Parts (Shanghai) Co Ltd now has a 4,600-square meter warehouse
in Shanghai Waigaoqiao Free Trade Zone in addition to an adjacent 1,000 square
meter area. The
company plans to expand a further 1,800 square meters in Waigaoqiao area in northeast
Shanghai from April and another 5,000 square meters coverage is also under consideration,
said Volvo Parts general manager Lu Zhonghang. "China
is a strategic market for Volvo worldwide thanks to its unexpectedly strong growth,"
said Lu. The
parts company in Shanghai is Volvo's third largest parts base in Asia. Lu said
it boasted an advanced and effective management system. It
supplies 14,000 kinds of parts mainly for Volvo trucks for the domestic market
in addition to marine engines, and industrial engines and construction equipment. Volvo
Parts (Shanghai) reported its sale revenue had increased nine-fold to several
hundred million yuan last year compared to 2002 when it started operation. Annual
growth averaged at 50 percent, Lu said. "In
the future, expansion of the warehouses also serves Volvo's ambitious sourcing
plan from China to the global market," Lu added. China's booming economy
has created a huge demand for trucks in logistics and construction industries. Sales
of commercial vehicles climbed 22.25 percent to hit a record high of 2.49 million
units in China last year. "A
well-developed after-sales service is crucial to maintain competitiveness in a
market 90 percent dominated by Chinese peers," said Niu Jigang, auto analyst
from Debon Securities Co Ltd.
Editor:
Ida Zhang from Chinabuses.com
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