KOLKATA: Volvo Cars, the Swedish luxury car company, will roll out its first assembled car, the luxurious XC90 today from its plant in Bengaluru.
Earlier this summer, Volvo announced that it would start assembly operations in India in 2017, a company release issued here said.
India has shown a great long-term potential for a fast-expanding luxury segment and the decision to assemble Volvo Cars locally has provided the company a strong platform to achieve 10 per cent segment share by the end of the decade.
The assembly operations is located near Bengaluru and focus on models based on Volvo’s SPA modular vehicle architecture. Apart from the XC90 more models on the SPA architecture are slated for local assembly and an announcement on the same will happen at a later stage.
Volvo Cars is working together with Volvo Group India – the truck, bus, construction equipment and Penta engines manufacturer ? for its assembly operations and is making use of Volvo Group India’s existing infrastructure and production licenses near Bengaluru.
“It’s a moment of great pride for all of us at Volvo Cars”, said Charles Frump, the newly appointed Managing Director for Volvo Auto India. “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,” the release quoted him as saying.
Volvo Cars’ decision to assemble its models locally reflects the ‘Make in India’ initiative and benefits customers. While the Indian luxury market is still relatively small, it is forecast to grow rapidly in coming years.
Volvo currently has a segment share of about 5 per cent and aims to double this by 2020. Volvo Cars in India have had a robust 32 per cent growth in sales volumes in the past two years and the 2017 trend is as per the company’s plan to achieve 2000 cars, which will witness a growth of 25 per cent year-on-year. (AGENCIES)
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