Volvo, which entered the China market in 1991, said it sold over 1,000 trucks in China last year and expects the joint venture to boost sales above 10,000 units by 2010.

The 50-50 venture expects the total China market for trucks over 36,000-lbs. GVWR to be 50,000 units a year, growing to 100,000 annually over the next 6-8 years.

"China is a key market for Volvo and we have been working to systematically establish all our business areas in China," said president & CEO Leif Johansson.

According to Claes Claeson, VTC's director of media relations, trucks remain a critical core business area for Volvo, representing 67% of the company's revenues last year.

Claeson added that the joint venture is a continuation of the consolidation trend occurring in global truck manufacturing. He points to Western Europe as an example, where six major truck OEMs remain today, down from 40 in 1965.