Volvo XC90

Local Assembly Of Volvo India Cars Put On Hold

Volvo India has decided to postpone local assembly of its cars due to low sales figures.


The Swedish manufacturer is looking to increase its volumes before making the big investment. “As of now, there is no decision to set-up a plant in India,” Tom von Bonsdorff, managing director, Volvo India. “In a price-sensitive market like India, it is imperative for any car manufacturer to have a production unit. However, we must achieve a certain base to begin localization for our investment to turn viable.”

Volvo S90 sedan
Volvo has started accepting bookings for the S90 sedan

Volvo cars compete against established brands like Jaguar Land Rover, BMW, Audi and Mercedes-Benz. While the luxury segment leader, Mercedes-Benz, sold 13,502 units in 2015, Volvo managed to sell only 1,423 units. Although Volvo cars are completely imported into the country via the CBU (Completely Built-Up Unit) route, their cars are priced competitively.

The manufacturer is looking to increase sales by increasing the dealer network and launching two new cars in the near future. The two new cars will be the XC90 T8 Plug-in Hybrid and the S90 sedan, which will replace the S80. Bookings are now open for the sedan. The dealer network, which currently stands at just 12 across India, will be increased by the end of the year. Volvo could bring the Polestar range of performance cars into the country soon. They are also planning a range of global small cars under the compact 40 series models, including the XC40 SUV.

Volvo XC90 front
Currently, all Volvo cars are imported into the country

The current Volvo India’s line-up consists of the V40 hatchback, V40 Cross Country, S60 sedan, S60 Cross Country, S80 sedan, XC60 SUV and the XC90 SUV. The range starts at INR 25.99 lakhs (ex-showroom, New Delhi) and goes up to INR 80.24 lakhs (ex-showroom, New Delhi).


Source – Autocar India

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