Volvo Cars has rolled out its first vehicle assembled in India, the Volvo XC90, from its plant in Bengaluru, Karnataka.
Volvo had announced its assembly plans in May. The assembly operations is located near Bengaluru and will 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.
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For its assembly operations, Volvo Cars has teamed up with Volvo Group India - the truck, bus, construction equipment and Penta engines manufacturer. The company makes use of Volvo Group India’s existing infrastructure and production licenses near Bengaluru.
Charles Frump, the newly appointed Managing Director for Volvo Auto 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.
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Volvo currently has a segment share of about 5%. With the new assembly plant, the company aims to reach 10 percent by 2020. Volvo Cars in India witnessed 32% growth in sales volumes in the past two years; and the 2017 trend is as per the brand’s plan to achieve 2,000 cars, which will witness a growth of 25% year-on-year. Volvo has 17 dealerships across India, and will open a dealership in Calicut soon.
Currently Volvo sells ten models, ranging from V40 hatchback to XC90 SUV. It is reported that the entry-level Volvo XC40 will launch in the country next year.