Heavy-vehicles manufacturer Volvo recently announced that it would invest Rs 3,800 crore in India in the next few years.

Of the total investment, Rs 1,800 crore would go to the Swedish vehicle maker's joint venture (JV) with Eicher Motors, while the remaining amount would be invested towards improving its own operations.

Volvo, one of the leading manufacturers of truck, bus and earth-moving equipments in the world, has a 50:50 JV with Eicher Motors. The JV, called VE Commercial Vehicles, produces the Volvo-branded of trucks and Eicher brands of trucks and buses.

Olof Persson, president & chief executive officer of Volvo Group, said that they expected growth rates in India to be higher than several other countries.

Speaking to reporters, Persson said, "With the investments we are making and the plans we have for India, we expect growth rates here to be higher than many other markets."

Volvo has announced its investment plans at a time when it is witnessing poor demand across European as well as North American countries, dealers are cutting on stocks.

With the huge investment, the Swedish manufacturer also aims to take on well-established rivals such as Ashok Leyland and Tata Motors.