Volvo CE to Launch Localized Medium Wheel Loaders in 2027 Following SDLG Exit

Volvo Construction Equipment (Volvo CE) plans to launch localized, Volvo-branded medium wheel loaders in India in 2027 to address a product gap stemming from its global exit from Chinese joint-venture partner SDLG.

Speaking ahead of bauma CONEXPO INDIA 2026 in Greater Noida, Dimitrov Krishnan, Managing Director of Volvo CE India, outlined the company’s strategy to defend its market share while restructuring its commercial footprint and product portfolio.

Volvo CE currently sells approximately 100 premium Volvo-branded wheel loaders annually in India, primarily serving high-capacity mining and industrial operations.

However, the broader value-focused medium wheel loader market was previously addressed strongly  through its partnership with SDLG. "In January, we will not have the product, but definitely during 2027, we will be launching those products too," Krishnan said, confirming that engineering teams at the company’s Bengaluru Technology Centre are developing India-oriented solutions using Volvo's global loader platforms.

Why Volvo Exited the SDLG Joint Venture

The upcoming loader launch follows Volvo Group’s decision to unwind its 18-year joint venture with SDLG, which was established in 2008. The divestment, executed last year, aligns with a broader corporate policy to exit China-based joint ventures for various reasons.

Under transition mechanics, Volvo CE continues to assemble and distribute SDLG loaders from its Bengaluru plant, which is expected to continue until the end of this year. SDLG is concurrently establishing an independent distribution and assembly network in India, with sales territories being handed over in structured phases.

Volvo CE's Asphalt Paver Sale to Ammann

This portfolio rationalization mirrors Volvo CE’s global divestment of its asphalt paving business to Switzerland-based Ammann Group, completed in 2024. Krishnan explained that pavers lacked long-term strategic fit because Volvo CE elected not to build out a full asphalt ecosystem, such as batching plants.

Following a 12-month contract manufacturing transition, Ammann relocated paver production to its facility in Gujarat. Volvo CE retained its road compaction line, continuing to manufacture and sell soil compactors, double-drum rollers, and pneumatic tire rollers.

Eicher-Shared Volvo CV5 Engines in Compactors and Excavators

To support its domestic machine range, Volvo CE has integrated Volvo Asia CV5 electronic engines (494 and 483 models), shared with Eicher commercial vehicles, into its compactors and EC210E2 excavators to optimize fuel efficiency and maintenance costs.

Volvo CE EC650 Mining Excavator Launched at bauma CONEXPO INDIA 2026

The strategic pivot was highlighted at bauma CONEXPO INDIA 2026, where Volvo CE commercially launched the EC650, a 65-tonne class mining excavator powered by a 435-horsepower Volvo D13E engine. The manufacturer also showcased a comprehensive line of construction, compaction, and electric equipment, including the L120 electric wheel loader.

"India's mining sector is operating at a scale and intensity like never before, and it demands equipment that cannot just perform reliably in the toughest and most demanding conditions, but also are fuel efficient," Krishnan noted. He highlighted that contractors are shifting toward larger machines, alongside growing  demand from a Rs 16 lakh crore railway project pipeline and urban infrastructure expansion.