Volvo CE India’s Service Business Becomes a Strong Revenue Pillar

By Jony Shekhawat | Published Date : December 29, 2025

Volvo CE India’s Equipment-as-a-Service model has now crossed the Rs 100 crore revenue mark, showing strong growth in the company’s services business.

Volvo CE India is slowly changing the way the construction equipment business works in the country. Earlier, companies only depended on selling machines. Now, services are becoming the real support system. This shift is helping Volvo commercial vehicles stay strong even when the market goes up and down.

Today, services like spare parts, repair contracts, digital monitoring, and the Equipment-as-a-Service (EaaS) model contribute around 30% of Volvo CE India’s total revenue. This change is becoming as important for the brand as its popular trucks and buses business worldwide, including Volvo trucks and Volvo buses.

Services Become the Backbone of Business

Table Of Contents

1. Services Become the Backbone of Business

2. The ‘Netflix Model’ for Heavy Machines

3. Second Life Market Gives Extra Advantage

4. Made-in-Bharat Push with Localisation

5. Electric Machines and Long-Term Growth

Read More: Tata Prima E.28K LD and HD Tippers Ready to Change Construction Transport

Speaking at EXCON 2025 in Bengaluru, Dimitrov Krishnan, Managing Director, Volvo CE India, said services are no longer optional. According to him, services are the “bedrock” of stable business performance in construction equipment.

The numbers clearly show this shift. In FY2024, Volvo CE’s machine sales dropped by 5% due to slow road projects and global pressure. But during the same time, parts and service revenue jumped by 28%. The company reported a total revenue of Rs 2,232.5 crore, with an operating profit of Rs 59.4 crore.

This service-led approach gives stability, just like after-sales support does for buses and trucks in the Volvo commercial vehicles portfolio.

The ‘Netflix Model’ for Heavy Machines

The biggest highlight in Volvo’s service journey is Equipment-as-a-Service, launched around three years ago. Under this model, customers don’t need to invest huge capital to buy machines.

Instead of owning a 20-ton excavator, contractors pay only for how many hours the machine works. Krishnan explains that customers avoid big loans and manage costs through daily operations. This model works well for small and mid-size contractors.

Today, EaaS alone has crossed nearly Rs 100 crore in revenue, and Volvo plans to grow this many times in the next five years. Both diesel and electric machines will be offered under this model, similar to flexible ownership models seen in modern trucks and buses segments.

Second Life Market Gives Extra Advantage

An unexpected benefit of EaaS is the used equipment market. Once machines complete a few years in the EaaS fleet, they are sold as certified used machines.

These machines usually have 8,000 to 12,000 working hours, but still have a long life left. Volvo sells them with a 3 to 6-month warranty, making premium machines affordable for smaller contractors.

This helps Volvo machines reach more sites across India, just like Volvo trucks and Volvo buses remain visible on highways and city roads.

Made-in-Bharat Push with Localisation

Localisation is another strong pillar for Volvo CE India. Models like EC210 and the new EC215 now have nearly 70% local content. This helps in better pricing and better performance on Indian soil.

Based on feedback from more than 1,000 customers, Volvo improved stability by adding a heavier undercarriage and a bigger bucket. The upcoming Technology Centre in Bengaluru will further support R&D and localisation, where around 4–5% of revenue is invested back into innovation.

Electric Machines and Long-Term Growth

Electric construction equipment is the next big step. Volvo believes India may adopt electric machines faster than Europe, especially in controlled areas like ports and mines.
The L120 Electric Wheel Loader is already in production and available in India. Krishnan feels 15–16% of wheel loaders can go electric today, and this could rise to 40% in the next five years. Managing batteries and charging will again open new service opportunities.

Despite short-term slowdown in road construction, Volvo remains positive. The company expects the industry to double to 2.6 lakh units by 2035, supported by infrastructure growth. Just like its strong presence in buses and trucks, Volvo CE is building a long road ahead in India.

Also Read: Citroën Delivers 51 C3 CNG Vehicles to Luthra Group in Surat

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Frequently Asked Questions on Commercial Vehicles

Q1. What is the average life of Volvo commercial vehicles in India?

Ans. With proper maintenance, Volvo commercial vehicles like trucks and buses can easily run for 10–15 years, depending on usage.

Q2. Are Volvo buses suitable for long-distance travel?

Ans. Yes, Volvo buses are designed for long routes, offering comfort, safety features and better fuel efficiency.

Q3. Do Volvo trucks come with service contracts in India?

Ans. Volvo trucks are offered with flexible service and maintenance packages to reduce downtime and running costs.

Q4. Are electric Volvo commercial vehicles available in India?

Ans. Volvo has started introducing electric options in selected segments, and more electric trucks and buses are expected in the coming years.

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