Volvo Cars have announced its Make-in-India plans. The Swedish car maker will start local assembly of its vehicles in India. This move is to strengthen their position in the ever-expanding premium car segment in the country.
Volvo Cars is setting up the assembly facility near Bengaluru with Volvo Group India that manufactures trucks, buses, construction equipment and Penta engines. The focus will be on models that are based on Volvo’s SPA modular vehicle architecture.
Hakan 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.”
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.”
Currently, Volvo has a 5% market share in the premium segment in India, which it aims to double by 2020. Volvo Cars India have had a tremendous growth of 32% in sales volumes in the last 2 years. The company is on the path to achieving its goal of selling 2000 cars in 2017, which will mark a growth of 25% year-on-year.