Swedish car maker, Volvo Cars, has today announced that the company will start assembling its vehicles in India in 2017. The move will result in affordable prices for its range of vehicles, thereby helping the company to grow in the premium car segment in India. The vehicle assembly facility will be located near Bengaluru, India. Volvo cars based on the company’s SPA modular vehicle architecture will be assembled initially. That said, the Volvo XC90 premium SUV will be the first vehicle to be assembled locally in India.
Volvo Cars is working closely with Volvo Group India to establish its local assembly operations. The Volvo Group India manufactures trucks, buses, Penta engines and construction equipment. Volvo Cars will make use of Volvo Group India’s current infrastructure and production facility to assemble its range of cars in India. However, the Swedish carmaker refrained from providing further contract and financial details. Apart from the Volvo XC90, other Volvo cars set for local assembly will be revealed at a later stage. Also Read: Volvo S60 Polestar launched; Priced in India at INR 52.5 lakh
Commenting about the local assembly of Volvo cars in India, Håkan Samuelsson, President and CEO of Volvo Cars, said, “I am pleased that as of this year we will be able to start selling Volvos that are Made in India. 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.”
Furthermore, Tom von Bonsdorff, Managing Director, Volvo Auto India, said, “We are delighted to announce the commencement of local assembly unit. “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.”