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 Bangalore in southern India and focus
on models based on Volvo’s SPA modular vehicle architecture. The first Volvo
model to be assembled there is the XC90 premium SUV. Additional models slated
for local assembly will be announced at a later stage.
In
establishing its assembly operations, Volvo Cars is working together with Volvo
Group, the truck, bus and construction equipment manufacturer, and will make
use of Volvo Group’s existing infrastructure and production licenses near
Bangalore. No further contract and financial details will be disclosed.
“I am
pleased that as of this year we will be able to start selling Volvos that are
Made in India,” said Håkan Samuelsson, president and chief executive of Volvo
Cars. “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 premium segment in coming years.”
"We
are delighted to announce the commencement of an assembly unit,” said Tom von
Bonsdorff, Managing Director, Volvo Auto India. “It’s a sign of the company’s
strong commitment to India.”
Volvo’s
decision to start assembly in India and market its vehicles as ‘Made in India’
fits well with a similarly named initiative launched by the national government
several years ago, which seeks to highlight and promote Indian manufacturing
prowess.
While the
Indian premium market is still relatively small, it is forecast to grow rapidly
in coming years. Volvo currently has a premium segment share of close to 5 per
cent and aims to double this by 2020. In 2016, Volvo sold over 1,400 cars in
India, an increase of 24 per cent compared to 2015. Year-on-year sales growth
in the first four months of 2017 amounted to more than 35 per cent.
Source: Volvo Cars Global Newsroom.
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