Volvo’s decision to start assembly in India fits well with the Indian government’s #MakeinIndia initiative that aims to highlight and promote Indian manufacturing prowess. Each locally assembled car will have the same international standards as anywhere else in the world.
Volvo currently has a premium segment share of just about 5%, but aims to double this by 2020. While the Indian luxury market is relatively small, it is forecast to grow rapidly in the coming years. Volvo Cars has shown a 32% growth in sales volumes in the past 2 years in India, and the 2017 trend is as per plan to achieve 2000 cars; giving the company a YOY growth of 25%.