Bengaluru, 18 May 2017: Beginning this year, Volvo will start selling cars that are Made in India, as the premium car maker works closely with Volvo Group India to establish its assembly operations here. Volvo Group already has an existing infrastructure and production licenses which make trucks, buses, construction equipment and Penta engines, and the same will be used to bring out the car models. Located near Bengaluru, the unit will focus on models based on Volvo’s SPA modular vehicle architecture and the first Volvo model to be assembled will be the XC90.
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%.