Volvo Plans to Assemble its Plant in India

Volvo Plans to Assemble its Plant in India

Volvo has all the plans to expand in India. it plans to set up an assembly plant in the country giving competition to its rival brands like Mercedes, Audi, BMW, Benz and Jaguar.

Managing director of the company says, “Our volumes may be low in India, but we have been growing. An assembly operation is being worked upon and may happen soon, once a final decision is taken by the headquarters.” He added, “Absence of local assembly operations does not necessarily slow down our growth here as we have still managed a competitive pricing. We want to sell a lot more cars as Volvo’s product portfolio in India is priced between Rs 26 lakh for the V40 premium hatchback and Rs 1.25 crore for the hybrid version of the XC90 SUV (prices ex-showroom Delhi). Other models being sold by the company include sedans such as S60 and S90, XC60 SUV and performance vehicle S60 Polestar, which has been launched recently. The market for luxury cars in India is dominated by German companies and saw sales of around 36,000 units last year. Volvo sold around 1,600 units last year and Bonsdorff said the volume can cross 2,000 units this year. “We see buoyancy and demand is there.”

Volvo plans to plant a local assembly factory as importing it carry a duty of over 100%. Whereas Mercedes assembles its car models from Pune outlet, BMW from Chennai, Audi from Aurangabad.