Volvo Cars to start assembly operations in India this year

Volvo Cars to start assembly operations in India this year

"I am pleased that as of this year we will be able to start selling Volvos that are Made in India", said Håkan Samuelsson, President and CEO of Volvo Cars. Volvo XC90 SUV will be the first product to be locally assembled.

Volvo Auto India now sells eight luxury models comprising the S60 sedan, S60 Cross Country, V40 hatchback, V40 Cross Country, XC60, XC90, XC90 Excellence plug-in hybrid, and the S90 premium sedan.

Volvo, the Swedish automaker of luxury cars, has now announced that it will commence local assembly operation in the Indian auto market, starting this year itself.

India is the fifth country in which Volvo Cars assembles vehicles after Sweden, Belgium, China and Malaysia.

Volvo will begin its assembly operations in Bengaluru, and will focus on models based on Volvo's SPA modular vehicle architecture.

"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", the company said in a statement without divulging details of the investment. In 2015, the company had sold 1,423 units while in 2014, it stood at 1,202. Other models would follow later, the carmaker said. Volvo wants to double its current market share of five percent by the end of this decade. All the models are imported.

The company's main vehicle production plants are now located in Sweden, Belgium and China. Additional models slated for local assembly will be announced at a later stage, it said.

"We don't see big adjustments in prices as the models are already priced competitively", he said.

Volvo Cars sold only 1,400 cars in India in 2016, an increase of 24 percent over the previous year. The firm estimates that the market will expand by more than 10% in 2017, the fastest in three years, and 42% and 21% in 2018 and 2019, respectively.

May 18 Geely-owned automaker Volvo Cars said on Thursday it would start vehicle assembly operations in India this year aiming to grab a bigger share of the country's fast-growing premium auto segment.