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Volvo ramps up automation efforts in self-driving technologies

By Ma Si | China Daily | Updated: 2018-07-17 10:04
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Volvo is already testing its self-driving trucks nearly a mile below the surface in an ore mine and other semi-confined areas such as harbors. [Photo/IC]

Volvo Group is ramping up resources to explore how to better tap the China market's growing enthusiasm toward self-driving technologies, with its focus on the application of autonomous trucks in harbors, a senior official said.

Claes Svedberg, president of Volvo China Investment Co Ltd, said seven of the top 10 busiest ports in the world are located in China, offering big potential for the use of self-driving trucks.

"We are working with local partners to find a way to incorporate the autonomous solutions into harbors," Svedberg said.

Volvo Group so far has the largest number of connected vehicles in the world, with about 700,000 connected trucks and construction machinery equipment, which will give it an advantage in offering sustainable transportation solutions, he added.

Currently, the Swedish automaker is already testing its self-driving trucks nearly a mile (1.6 kilometers) below the surface in an ore mine and other semi-confined areas such as harbors.

Such a move is part of its broad push to explore how automation can contribute to increased productivity, enhanced safety and lower environmental impact.

In June, the company also demonstrated an autonomous bus, which is computer programmed to accelerate and brake gently and smoothly.

"The Chinese are willing to spend on new technologies, thus bringing up many interesting new businesses. China has an interesting future ahead," Svedberg said.

According to him, the China market is of high importance to the Gothenburg-based company, with all aspects of its businesses having a presence in the country, ranging from trucks, buses, construction equipment, marine engine to financial services.

In 2015, Volvo Group set up a joint venture with Dongfeng Motor Corp to expand its presence in the heavy-duty and middle-duty truck segment.

"China's booming e-commerce business is an important engine for our growth as it is driving the entire transport system forward, setting high demand for punctuality and reliability," Svedberg said.

Leading Chinese courier companies such as Yunda Express, Zhongtong Express and Yuantong Express are all Volvo Group's clients.

China's heavy truck market is forecast to remain strong this year. In 2017, the country saw the sales volume of heavy trucks surge 52 percent year-on-year to more than 1.11 million units, a record since 2010, according to the China Association of Automobile Manufacturers.

In 2018, the sector will maintain robust growth, partly due to the upturn in the global economy, solid domestic demand and the replacement of older truck models, said Gao Deng, an analyst at Changjiang Securities, in a research note.

In April, China said it will remove restrictions on new-energy vehicle ventures this year, and will scrap foreign ownership caps on local auto companies by 2022.

"The policy opens a possibility of setting up an independent foreign auto company in China. We welcome such a development," Svedberg said.

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