Premium car maker Volvo Cars
will start vehicle assembly operations in Hoskote, near Bengaluru in the Indian
state of Karnataka in 2017. Volvo Cars has established a company in India by
the name of Volvo Auto India which has been importing Volvo cars since it began
operation in the country in 2007.
With this move, Volvo Auto
India (VAI) will be in the august company of several other premium car
manufacturers like Audi, BMW, Mercedes-Benz and Jaguar Land Rover who have either
manufacturing or assembly operations in India.
The assembly operations will
be located near Bengaluru in southern India and focus on models based on
Volvo’s SPA modular vehicle architecture. The first Volvo model to be assembled
there is the XC90 premium SUV. Additional models slated for local assembly will
be announced at a later stage.
Incidentally, Volvo Group has
a high end bus and truck making plant near Bengaluru in Hoskote in Karnataka. 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. No further contract and financial details will be disclosed.
“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. “Starting vehicle assembly
in India is an important step for Volvo Cars as we aim to grow our sales in
this fast-growing market and double our market share in the luxury segment in
coming years,” he said
"We are delighted to
announce the commencement of local assembly unit,” said Tom von Bonsdorff,
Managing Director, Volvo Auto India. “It’s a sign of the company’s strong commitment
in India. Backed by a robust sales growth, expanding network and an array of
new product launches the local assembly will provide us an impetus to garner a
sizeable segment share in the medium to long term. Each locally assembled Volvo
Car will have same International standards as anywhere else in the world. With
our continued efforts we are sure to build a strong foundation for our business
in India,” he said
While the Indian luxury market
is still relatively small, it is forecast to grow rapidly in coming years.
Volvo currently has a premium segment share of close to 5 per cent and aims to
double this by 2020. Volvo Cars in India have had a 32% growth in sales volumes
in the past two years and the 2017 trend is as per its plan to achieve 2000 cars.
This will give the company a growth of 25% year-on-year.
Volvo Cars currently sells nine luxury models
in the country. These include the Volvo S60, Volvo S60 Polestar, Volvo S60
Cross Country, Volvo V40 Cross Country, Volvo XC60, Volvo XC90, Volvo XC90 and
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