First Locally Assembled Volvo Car Rolls Out Of Factory
Thursday, October 12, 2017
Editor Garipoint
Volvo begins assembly operations in India with XC90

Swedish carmaker Volvo has finally taken the push to start local assembly, 11 years after entering India.

The assembly operations are situated close Bengaluru in southern India and concentrate on models in view of Volvo's SPA modular vehicle architecture. Aside from 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. SPA-based cars sold in India incorporate the S90 and the V90 Cross Country.

Volvo first announced its plan for beginning local assembly in India in May 2017. The Volvo XC90 will soon be trailed by the S90 and the upcoming second-gen XC60 SUV in the near future. For local assembly, the existing facility of Volvo Group India in Bengaluru has been utilized, which as of now delivers trucks, buses, construction equipment and Penta engines.

Volvo Cars' choice to assemble its models locally reflects the 'Make in India' initiative and advantages our clients. While the Indian luxury market is still generally small, it is forecast to develop quickly in coming years. Volvo as of now has a fragment offer of around 5% and plans to double this by 2020. Volvo Cars in India have had a robust 32% growth in sales volumes in the past two years and the 2017 trend is as per our plan to achieve 2000 cars, which will witness a growth of 25% year-on-year.

"The last three years have been good for us in India and we are on-track to gain a larger share of the segment," Charles Frump, the recently appointed managing director for Volvo Auto India said.

Notwithstanding its models being liable to a higher rate of duty in comparison with locally assembled rivals from Audi, BMW, Mercedes-Benz and Jaguar Land Rover, Volvo has so far figured out how to value its products aggressively. The local assembly of the XC90 is unlikely to result in a reduction in prices, said Volvo India's spokesperson to Autocar India.