Volvo Cars announces ‘Make in India’ plans. First assembled cars to roll-out this year
Bengaluru, May 18, 2017- Volvo Cars, the premium carmaker, announced today that it will start vehicle assembly operations in India in 2017. This positions the company for further growth in the fast-expanding premium car segment in India.
The assembly operations will be located near Bengaluruin southern India and focus on models based on Volvo’s SPA modular vehiclearchitecture. The first Volvo model to be assembled there is the XC90 premiumSUV. Additional models slated for local assembly will be announced at a laterstage.
In establishing its assembly operations, Volvo Cars isworking together with Volvo Group India - the truck, bus, constructionequipment and Penta engines manufacturer, and will make use of Volvo GroupIndia’s existing infrastructure and production licenses near Bengaluru. Nofurther contract and financial details will be disclosed.
“I am pleased that as of this year we will beable to start selling Volvos that are Made in India,” said HåkanSamuelsson, President and CEO of Volvo Cars. “Starting vehicle assemblyin India is an important step for Volvo Cars as we aim to grow our sales inthis fast-growing market and double our market share in the luxury segment incoming years.”
"We are delighted to announce thecommencement of local assembly unit,” said Tom vonBonsdorff, Managing Director, Volvo Auto India. “It’s asign 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 willprovide us an impetus to garner a sizeable segment share in the medium to longterm. Each locally assembled Volvo Car will have same International standardsas anywhere else in the world. With our continued efforts we are sure to builda strong foundation for our business in India.”
Volvo’s decision to start assembly in India and marketits vehicles as ‘Made in India’ fits well with a similarly named initiativelaunched by the national government several years ago, which seeks to highlightand promote Indian manufacturing prowess.
While the Indian luxury market is still relativelysmall, it is forecast to grow rapidly in coming years. Volvo currently has apremium segment share of close to 5 per cent and aims to double this by 2020.Volvo Cars in India have had a robust 32% growth in sales volumes in the past 2years and the 2017 trend is as per our plan to achieve 2000 cars, this willgive us a growth of 25% year-on-year.