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wedish truck manufacturer Volvo Trucks hopes to achieve higher sales in Indonesia by targeting the country’s niche mining-business market.

With its specialization in selling trucks that are able to carry very heavy loads, Volvo Trucks is confident it can significantly boost sales volume to 1,000 units in 2018, up from 401 units in 2017.

“Indonesia now is our largest global market in Southeast Asia. We are mainly into the mining business,” Lars Erik Forsbergh, Volvo Trucks International Southeast Asia vice president, said in Gothenburg, Sweden,
recently.

The mining industry globally, including in Indonesia, suffered from falling commodity prices from 2014-2016, but these have started to recover this year.

“We have had a couple of years when we were able to sell 500-600 units a year. Then there was also a time when coal mining was at quite a low level,” he added.

In Indonesia, Volvo Trucks sells three truck models, namely the FH, FMX and FM. The FMX is a heavy-duty truck used for extreme-weight transportation in deep mines. The FH16 is usually used to transport coal from mines to ports. Not many FMs are sold in Indonesia.

Volvo trucks can be adapted for many different circumstances. In the Indonesian market, the FH16 has been modified so it can carry loads of up to 300 tons, Lars said.

Acknowledging increasing competition from Japanese and Indian brands that sell cheaper products, the company said that it would continue to provide reliable and high-quality trucks.

Moreover, it will also develop services in Indonesia, ensuring the availability of parts, and also train drivers to ensure that they are able to use all the functions provided by the trucks optimally.

Volvo Trucks Indonesia operates through two distributors, namely PT Eka Dharma Jaya Sakti and PT Indotruck Utama, both owned by business conglomerate Salim Group.

The truck manufacturer does not have any plans to start production locally in the near future as it does not see a need to do so at the moment. Furthermore, it also has no plans to launch new models, especially for Indonesian market, in 2018.

In order to remain in the forefront of technological development, Volvo Trucks International has continuously updated its models, such as incorporating autonomous technology in its vehicles.

Last week in Gothenburg, Volvo Trucks presented its latest technological innovation for autonomous technology and electromobility.

The truck manufacturer has been conducting several pilot projects for the autonomous technology and looking to commercialize it step-by-step.

Meanwhile, with regard to electromobility, the truck maker will be producing electric trucks by 2019 for the European market.

Volvo Trucks invests approximately €1.3 billion (US$1.5 billion) each year for its research and development, Heléne Mellquist, Volvo Trucks International senior vice president, said in Sweden.

Volvo Trucks is a global company with representation and sales in 72 countries in Asia, Australia, the Middle East and Africa.

Globally, the firm sold 112,600 trucks in 2017, with the biggest markets being the United States with 16,667 units, followed by the United Kingdom with 6,908 units, Germany with 6,757 units and France with 6,455 units.