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Volvo Cars roll out first Made-in-India XC90

Swedish auto maker Volvo Cars, rolls out its first assembled car, the luxurious XC90 from its Bengaluru plant today.  Earlier this year, Volvo announced that it would start assembly operations in India in 2017.

India has shown a great long-term potential for a fast-expanding luxury segment and the decision to assemble Volvo Cars locally has provided the company a strong platform to achieve 10 percent segment share by the end of the decade.

The assembly operation is located near Bengaluru in southern India and focus on models based on Volvo’s SPA modular vehicle architecture. Also from the XC90 more models on the SPA architecture are slated for local assembly.


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 to establish its assembly operations.

The newly appointed Managing Director for Volvo Auto India, Charles Frump, said, “It’s a moment of great pride for all of us at Volvo Cars. The roll-out of first locally assembled Volvo Car speaks volumes for the company’s commitment to grow further in India. The last three years has been good for the company in India and we noticed a positive and encouraging growth in terms of increased segment share, world-class product and new dealer appointments  along with global standards in quality, we are a formidable luxury car company in India and on-track to gain a bigger share of the segment.”

Volvo Cars decision to assemble its models locally reflects the ‘Make in India’ initiative and benefits the customers.


While the Indian luxury market is still relatively small, it is forecast to grow rapidly in coming years. Volvo currently has a segment share of about 5 percent and aims to double this by 2020.

Volvo Cars in India have had a robust 32 percent growth in sales volumes in the past two years and the 2017 trend is as per the company’s  plan to achieve 2000 cars, which will witness a growth of 25 percent year-on-year.

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