Swedish auto maker Volvo Cars will rollout Made-in-India vehicles in 2017.
The assembly operations will be located near Bangalore and focus on models based on Volvo’s SPA modular vehicle architecture.
The first model to be assembled in the Indian plant is the Volvo XC90 premium SUV. 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 Bangalore to establish its assembly operations.
Håkan Samuelsson, President and CEO of Volvo Cars, “I am pleased that as of this year we will be able to start selling Volvos that are Made in India.”
He said, “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.”
Endorsing this, Tom von Bonsdorff, Managing Director, Volvo Auto India said the local assembly plant is a sign of the company’s strong commitment in India.
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 added.
Volvo’s decision to start assembly in India and market its vehicles as ‘Made in India’ is in the line of the union government ‘s initiative to promote Indian manufacturing prowess.
Currently, Volvo has close to 5 percent share in the premium car segment and aims to double this by 2020. Volvo Cars in India had a robust 32 percent growth in sales volumes in the past two years. The company targets to achieve 2000 cars in sales in 2017, achieving a growth of 25 percent year-on-year.