Volvo Auto India has rolled out the first locally assembled car, the XC90, from its production facility in Bengaluru. Earlier this summer, the company had announced that it would start assembly operations in India in 2017. The assembly operations is located near Bengaluru in southern India and focus on models based on Volvo’s SPA modular vehicle architecture. Besides the XC90, more models on the SPA architecture are slated for local assembly and an announcement on the same will happen at a later stage.
"It’s a moment of great pride for all of us at Volvo Cars”, said Charles Frump, the newly appointed Managing Director for Volvo Auto India. “The roll-out of first locally assembled Volvo Car speaks volumes for the company’s commitment to grow further in India. The last three years have been good for us in India and we noticed a positive and encouraging growth in terms of increased segment share, world-class product and new dealer appointments.With global standards in quality, we are a formidable luxury car company in India and on-track to gain a bigger share of the segment.” The local assembly of cars and SUVS would provided the company a strong platform to achieve 10 percent segment share by the end of the decade.
Volvo Cars is working together with Volvo Group India - the truck, bus, construction equipment and Penta engines manufacturer – for its assembly operations and is making use of Volvo Group India’s existing infrastructure and production licenses near Bengaluru. The Swedish automaker currently has a segment share of about 5 percent and aims to double this by 2020. Volvo Cars in India have had a robust 32 percent growth in sales volumes in the past two years and the 2017 trend is as per the plan to achieve 2000 cars, which will witness a growth of 25 percent year-on-year. The company's decision to assemble its models locally reflects the ‘Make in India’ initiative and benefits our customers.