Volvo India has started its local manufacturing operations at its Bengaluru plant with the Volvo XC90 becoming the first ever made in India car to roll off the assembly lines. With a target to double its market share from 5 to 10 per cent, Volvo will be channelizing the local production of its vehicles based on the SPA platform like the S90 and the V90 Cross Country in India.
Volvo first announced its plan for beginning local assembly in India in May 2017. The Volvo XC90 will soon be followed by the S90 sedan and the upcoming second-gen XC60 SUV in the near future. For local assembly, the existing facility of Volvo Group India in Bengaluru has been used, which already produces trucks, buses, construction equipment and Penta engines.
Charles Frump, Managing Director, 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.”
Local assembly is generally supported by reduction in the overall price range, but it is unlikely to happen in the case of Volvo. Especially since the automaker has already priced its products, including the XC90, competitively.
Source: CarDekho.com
