Earlier this year, Volvo had announced that it will start producing its cars in India. Now Volvo has finally rolled out its first assembled XC90 from its plant in Bangalore. These assembly operations will also take place for other models on the SPA architecture. The announcement for this will done at a later stage.
Volvo cars are working hand in hand with the Volvo group which manufactures trucks, buses, construction equipment and Penta engines. It is using the assembly operation of Volvo group. The decision will be beneficial to the customers as it comes under the Make in India initiative. This is also helping Volvo to make a pace in the luxury segment in India. As of now, it is a small segment but it is growing rapidly. Nowadays customers are willing to pay more for luxury and safety.
At present Volvo cars just have 5% of the Indian automotive market and with the make in India initiative, it is confident that it will double the ratio by 2020. From the past two years, Volvo cars have also seen an increase in the sales of its brand in India and are confident to improve in the coming years. Charles Frump who is the newly appointed Managing Director of Volvo India said, “It’s a moment of great pride for all of us at Volvo Cars.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.”