The Collaboration of Sany and Volvo Would Benefit Each Other
Sany and Volvo have started their long-term strategic contract since 2017, which built the foundation for their deep cooperation. During these years, Volvo’s sales volumes have increased by 75% in China, and there was over 50% growth in its orders, which were consigned to Sany. Hence, the presidents of both firms are meeting recently to discuss further collaboration.
Sany and Volvo are the tier-one firms in their areas separately, Sany is good at equipment manufacture while Volvo specializes in automaking. Affected by the COVID-19, Sany's expense ratios have been decreased by around 0.65%. However, the increasing need for pump truck markets help to increase Sany's operating incomes in June and July, with Volvo as its chasis providers.
Regarding Volvo, cooperating with Sany would further expand its businesses in China. According to Volvo’s annual report, there is a strong demand for Volvo cars in the Chinese market, with a sales growth of 18.7% compared with last year. As a whole, its retail sales in China have occupied the highest percentage of its overall sales – 29.91%.