Volvo India has confirmed its plans to start local assembly in India with operations to be located near Bangalore
Volvo India recently confirmed that they will start local assembly of their car models in India through an assembly plant located near Bangalore by the end of 2017. Among the first models to be assembled locally will be Volvo’s XC90 SUV, while other models to follow the SUV will be announced at a later stage.
Volvo India’s decision to manufacture and sell its vehicles under the ‘Made in India’ tagline fits well with the current government’s similarly named initiative which started a few years ago, which highlights the manufacturing prowess of the country.
The premium car segment in India is still small at the moment with a huge potential for rapid-growth, so Volvo’s decision to start assembly in India doesn’t come as a surprise as they would be betting on the segment to help them grow and acquire a large market share in the segment allowing them to hold a strong position among its competitors. Volvo India has already seen a 24 percent increase in sales in 2016 as compared to sales in 2015. In 2017, the year-on-year sales growth in the first four months showed a 35 percent increase.
Håkan Samuelsson, President and Chief Executive of Volvo Cars, said, “I am pleased that as of this year we 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 premium segment in coming years.”
Volvo India cars will work closely with Volvo’s truck, bus and construction equipment manufacturing division and make use of their existing infrastructure and production licences via a contract manufacturing agreement in Bangalore.
Tom von Bonsdorff, Managing Director, Volvo Auto India said, “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 premium segment in coming years.”