Volvo Cars India has confirmed that it will commence vehicle assembly operations in the country in 2017. The Swedish brand is positioning itself for further growth in the fast-expanding premium car segment in India. The facility for the assembly operations will be located in the southern India near Bangalore. Volvo will focus on models based on company’s SPA modular vehicle architecture and the first model that will be assembled at this facility is XC90 SUV, while other models will be announced at a later stage.
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. No further contract and financial details will be disclosed.
Speaking on this, Mr Håkan Samuelsson, President and CEO 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 luxury segment in coming years.”
"We are delighted to announce the commencement of local assembly unit,” said Tom von Bonsdorff, Managing Director, Volvo Auto India. “It’s 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.”
We know that the Indian luxury market is still relatively small, but it is expected to grow rapidly in coming future, where Volvo’s decision to start assembly in India and market its vehicles as ‘Made in India’ fits well with a similarly named initiative launched by the national government several years ago, which seeks to highlight and promote Indian manufacturing prowess.
Currently, Volvo has a premium segment share of close to 5 per cent and aims to double this by 2020. In the past 2 years, Volvo Cars in India have had a robust 32% growth in sales volumes and the 2017 trend is as per our plan to achieve 2000 cars, this will give us a growth of 25% year-on-year.