News 9/27/2018

Mobile Climate Control establishes operations in India

Mobile Climate Control, a division of VBG Group, is establishing a production facility in India. On the day of the facility’s inauguration, the division received orders with a total value of approximately SEK 5 M.

Mobile Climate Control, a division of VBG Group, opened a production facility in India in September. The new facility has about ten employees and is located just outside Bengaluru in the state of Karnataka. Initially, operations will focus on assembling complete AC systems for buses, but depending on demand, component manufacturing and product development may also be undertaken at the new facility.

About 100 representatives from various bus operators, bus body builders and manufacturers of complete buses, together with distributors and suppliers, attended the opening ceremony, which included speeches, ribbon cutting and a guided tour of the new premises. On the day of its inauguration, the division received orders with a total value of approximately SEK 5 M.

“We have noted substantial interest. India is an enormous market that is only now ready for air-conditioned buses. The emerging middle class would prefer to pay a little extra to travel in an air-conditioned bus and this is placing demands on bus operators to incorporate climate control systems into the buses. India’s infrastructure is also developing rapidly at present, which means better roads and thereby better prospects for a further increase in public transport. The future of our business here is therefore very promising,” says Clas Gunneberg, Executive Vice President of VBG Group and Division Manager of Mobile Climate Control.

Mobile Climate Control will initially focus on the bus market segment that, with about 60 per cent of sales, is the division’s largest. The market for off-road vehicles will also be interesting in the future. “We have noted that various types of off-road vehicles in India are being equipped with cabs and the drivers are therefore imposing demands for air conditioning, indicating a clear sales potential also in this segment in India. We are already talking to a number of manufacturers, and expect to deliver the first climate control systems within the next 12 months,” says Clas Gunneberg.

Mobile Climate Control is one of VBG Group’s four divisions and accounts for about half of the Group’s sales. During the first half of 2018, Mobile Climate Control reported strong growth and a sales increase of 17.6 per cent year-on-year.

“The establishment of Mobile Climate Control in India is entirely in line with the Group’s strategy for continued internationalisation in growth markets outside Europe and North America,” says Anders Birgersson, Managing Director and CEO of VBG Group.