Volvo Penta expands market share in China

Volvo Penta, Europe's largest marine engine maker, aims to become a leader in China as more global yacht makers are eyeing local production.

There is a "clear trend" that Western boat makers are moving to China to produce locally, according to Giorgio Paris, the company's head of emerging markets and Asia Pacific. The company counts established builders such as Azimut Yachts and Princess as customers.

Volvo Penta is tapping a growing number of homegrown yacht makers in China who would prefer a premium engine supplier so as to better compete in the luxury sector.

China's economic slowdown has been "reflected" in Volvo Penta's sales growth here but the company is still expanding its market share, Paris told Shanghai Daily at the annual China (Shanghai) International Boat Show, which runs through Sunday.

The company, which makes engines mainly in France and Sweden, will consider setting up production in China if there is enough demand, but there is no plan at present, he said.

Volvo Penta also provides power systems for the industrial sector.