Volvo CE India’s Equipment-as-a-Service Model Crosses ₹100 Crore Revenue Mark

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Key Highlights

• Equipment-as-a-Service revenue touches ₹100 crore.

• Services contribute nearly 30% of total revenue.

• Parts and services revenue grew 28% in FY24.

• Electric wheel loaders are gaining fast adoption.

• Strong localisation with up to 70% local content.

Volvo Construction Equipment (CE) India is steadily shifting from a traditional machine-selling business to a service-led growth model. This transition has helped the company’s Equipment-as-a-Service (EaaS) model touch a strong ₹100 crore revenue stream, highlighting how services are becoming a key pillar of its business in India.

Also Read: Volvo CE India Showcases New Made-in-Bharat EC215 Excavator at EXCON 2025

Services Now Drive 30% of Volvo CE India’s Revenue

The services segment, which includes spare parts, repair and maintenance contracts, digital monitoring solutions, and EaaS, now contributes nearly 30% of Volvo CE India’s total revenue. This change reflects the evolving needs of India’s construction equipment market, where stability and uptime are becoming as important as machine sales.

Speaking at EXCON 2025 in Bengaluru, Dimitrov Krishnan, Managing Director of Volvo CE India, said that services form the foundation of a stable construction equipment business, especially in a market affected by demand cycles and government spending fluctuations.

Strong Financial Performance Despite Machine Sales Dip

For the financial year ending March 31, 2024, Volvo CE India’s performance clearly showed the value of this shift. While machine sales declined by 5% due to global economic pressure and a slowdown in road construction, parts and services revenue grew by 28%.

During the same period:

• Total revenue stood at ₹2,232.5 crore

• Operating profit reached ₹59.4 crore

• The company maintained around 5% market share in India’s construction equipment industry

Equipment-as-a-Service: Pay-Per-Use Gains Momentum

Launched about three years ago, Volvo CE’s EaaS model offers a pay-per-use option that reduces heavy upfront investment for contractors. Instead of buying equipment through large loans, customers pay only for the hours a machine is used, shifting costs from capital expenditure to operating expenses.

This model has made advanced equipment more accessible to small and mid-sized contractors and has become a win-win solution for both customers and Volvo CE. The company now plans to expand EaaS revenue multiple times over the next five years, covering both diesel and electric machines.

Certified Used Machines Create a New Market

The EaaS fleet has also unlocked a strong certified used equipment business. After a few years in service, machines enter a second life as company-approved used equipment. These machines typically have 8,000 to 12,000 operating hours, leaving significant usable life.

Volvo CE offers these machines with a three- to six-month warranty, allowing budget-conscious buyers to own a reliable Volvo machine instead of opting for unorganised local brands. This approach helps the company reach entry-level customers while strengthening brand presence across job sites.

Made-in-Bharat Strategy Boosts Competitiveness

Localisation remains a major focus for Volvo CE India. Models like the EC210 and newly introduced EC215 excavators feature nearly 70% local content, helping improve pricing and suitability for Indian conditions.

Based on feedback from over 1,000 customers, Volvo upgraded the EC215 with a heavier undercarriage and a larger bucket to ensure better stability on Indian soil. Supporting this effort is an upcoming Technology Centre in Bengaluru, focused on R&D and localisation. Around 4–5% of company revenue is reinvested annually into technology and innovation.

Electric Construction Equipment Gains Ground

Electrification is emerging as the next major opportunity. Volvo CE believes India could adopt electric construction equipment faster than some European markets. The transition is currently led by wheel loaders, commonly used in ports, mines, and industrial zones where charging infrastructure is easier to install.

Volvo’s L120 Electric Wheel Loader is now in serial production and commercially available in India. Electric wheeled loaders currently make up 15–16% of the market, with expectations to reach 35–40% within five years. Managing battery health and charging cycles is expected to become a key service opportunity for OEMs.

Market Slowdown and Volvo’s Resilience

India’s road construction sector has slowed, with overall market volumes down by 13–14% due to cash flow issues and stalled projects. Despite this, Volvo CE has managed to hold ground in certain segments.

Its SD110 compactor, backed by a strong dealer network of over 350 locations across India, has gained market share even during the downturn. Once considered premium equipment during early highway projects, vibratory compactors are now standard across both urban and rural road construction.

Long-Term Outlook Remains Positive

Despite short-term challenges, Volvo CE India remains optimistic. The company expects India’s construction equipment industry to double to 260,000 units by 2035, driven by large-scale infrastructure projects, river-linking initiatives, and sustained urban growth.

With services, localisation, and electrification at the core of its strategy, Volvo CE India is positioning itself for steady and resilient growth in the years ahead.

Also Read: ACE Unveils Advanced Technology-Driven Equipment at EXCON 2025

CMV360 Says

Volvo CE India’s shift towards a service-led business model is reshaping how construction equipment is bought, used, and maintained in the country. With Equipment-as-a-Service crossing ₹100 crore, services now act as a growth stabiliser amid market fluctuations. Strong localisation, rising electric adoption, and a deep dealer network further strengthen Volvo CE’s long-term vision for India’s evolving infrastructure and construction equipment market.