A decade after entering India, premium carmaker Volvo Cars has announced its plans to start vehicle assembly operations in India this calendar year, at a place near Bengaluru. The first model to be assembled in the India plant would be the XC90 premium SUV, although the plan is to assemble models based on its SPA modular vehicle architecture, details about which would be announced later.
In establishing its assembly operations, Volvo Cars is working together with Volvo Group India – the truck, bus, construction equipment and Penta engines manufacturer, and will make use of Volvo Group India’s existing infrastructure and production licenses near Bengaluru, said the company in a release. No further contract and financial details will be disclosed, it stated.
Speaking about the development, Håkan Samuelsson, President and Chief Executive of Volvo Cars said he is pleased that as of this year Volvo will be able to start selling Volvos that are ‘Made in India’. “Starting vehicle assembly in India is an important step for Volvo Cars as we aim to grow our sales in this fast-growing market and double our market share in the luxury segment in coming years,” he said.
Tom von Bonsdorff, Managing Director, Volvo Auto India called this a sign of the company’s strong commitment in India. “Backed by a robust sales growth, expanding network and an array of new product launches, the local assembly will provide us an impetus to garner a sizeable segment share in the medium to long term. Each locally assembled Volvo Car will have same international standards as anywhere else in the world. With our continued efforts we are sure to build a strong foundation for our business in India,” he said.
Local assembly of Volvo cars in India is expected to help the company push its position in the market. The company currently has a premium segment share of close to 5 % and aims to double this by 2020. Volvo Cars in India claimed a robust 32 % growth in sales volumes in the past two years. In 2017, it is confident of achieving its planned sales target of 2000 cars, which will give the company a growth of 25 % year-on-year.