Volvo starts assembling cars in India

Volvo has commenced assembly of its cars in India, with XC90 being the first vehicle to roll out from its Bengaluru facility.  

Volvo Cars, the Swedish luxury carmaker, has rolled out the first locally assembled car from its plant in Bengaluru. Earlier in 2017, the company had announced that it would start assembly operations in India in 2017.

Volvo Cars is working together with Volvo Group India - the truck, bus, construction equipment and Penta engines division of the company - for its assembly operations, and is making use of Volvo Group India’s existing infrastructure and production licenses near Bengaluru.

According to Volvo, India has shown a great long-term potential for a fast expanding luxury segment. The decision to assemble Volvo Cars locally has provided the company a strong platform to achieve a targeted 10 per cent segment share by the end of the decade.

Volvo’s assembly operations located near Bengaluru mainly focus on models based on the company’s SPA modular vehicle architecture. Apart from the XC90, more models on the SPA architecture are slated for local assembly as well.

Volvo believes that while the Indian luxury market is still relatively small, it is very likely to grow rapidly in coming years. Volvo currently has a segment share of about 5 per cent and aims to double this by 2020. The company claims that its domestic car sales have had a 32 per cent growth in the past two years.

On locally assembling cars in India, Charles Frump, Managing Director for Volvo Auto India said, “The roll-out of first locally assembled Volvo Car speaks volumes for the company’s commitment to grow further in India. The last three years have been good for us in India and we noticed a positive and encouraging growth in terms of increased segment share, world-class product and new dealer appointments. With global standards in quality, we are a formidable luxury car company in India and on-track to gain a bigger share of the segment.”