Volvo is considering an assembly plant for cars in India

Nithyanandh

Nithyanandh K, As a toddler, those wheeled machinery fascinated me even before I knew what they’re called as! So here I'm, petrolhead by birth, Mechanical engineer by qualification and automotive reporter by profession!

Volvo V40 Cross Country frontVolvo Auto India is studying the possibility of setting up an assembly plant so as to ensure a better future here.

Volvo is currently importing their cars as CBUs (Completely Built Units). In an attempt to compensate for the lack of snob value that the big three Germans enjoy, Volvo India prices its cars competitively and this hurts the profit margin to a great extent.

If Volvo could find a way to assemble their cars locally, they can further drive down the prices and bring in wider customer base.

Volvo Auto India’s MD Mr. Thomas Ernburg told media that, “It makes sense to set up a car manufacturing facility in India as we target sales of 20,000 units by 2020 here. A group within Volvo is conducting feasibility report of setting up a facility in emerging economies including India.”

Volvo sold 820 units in India this year against a target of 800, which is 320 units more than the previous year. The company expects to sell 1,200 units in 2013 and aims at achieving 15% market share of the Indian luxury car market by 2020.

Volvo will bring the V40 Cross Country to India next year. Mr. Ernburg told: “We shall be launching our new model V40 Cross Country in India by March end or April, for which the price has not been finalized yet”

[Source: Rediff.com]

Contribute to IAB
Submit Spyshots & get Bragging rights! Click Here
Custom Mods on your ride? Get it featured on IAB Submit

Volvo V40 News & Updates

New Volvo V40 (facelift) launched at INR 25.49 Lakhs

New Volvo V40 (facelift) launched at INR 25.49 Lakhs

2016 Volvo V40 Cross Country (facelift) front

2016 Volvo V40 Cross Country (facelift) – In Images

Volvo V40 Concept car teaser front

Volvo XC40, Next-gen Volvo V40 concepts teased

2015 Volvo XC90 D5 Inscription grille full review

Volvo Auto India releases revised price list

2016 Volvo V40 (facelift) front at the 2016 Geneva Motor Show Live

2016 Volvo V40 (facelift) – Geneva Motor Show Live

2016 Volvo V40 (facelift) front three quarters second image old vs. new

2016 Volvo V40 (facelift) and V40 Cross Country – Old vs. New