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Swedish car maker Volvo Cars to start assembly operations in India in 2017

Will work with Volvo Group India - truck, bus, construction equipment, Penta engines manufacturer

Press Trust of India  |  New Delhi 

Tom Von Bonsdorff
Tom Von Bonsdorff

Swedish luxury car maker on Thursday announced plans to start vehicle assembly operations in this year.

The assembly operations will be located near and focus on models based on Volvo's SPA modular vehicle architecture, said in a statement.


The company will make use of Volvo Group India's existing infrastructure and production licences near Bengaluru, it said without disclosing further contract and financial details.

It will work together with Volvo Group — the truck, bus, construction equipment and Penta engines manufacturer — to set up its assembly operations in India, the company added.

The first model to be assembled in will be the company's premium SUV, XC90. Additional models slated for local assembly will be announced at a later stage, it said.

President and CEO Hakan Samuelsson said: "Starting vehicle assembly in is an important step for as we aim to grow our sales in this fast-growing market and double our market share in the luxury segment in coming years."

Volvo has around 5 per cent market share in the luxury car segment in and plans to double this by 2020. The Indian luxury car market stood at around 34,000 units, down over 5 per cent from about 36,000 in 2015.

Last year, Volvo Auto sold nearly 1,600 units. In 2015, the company had sold 1,423 units while in 2014, it stood at 1,202.

Volvo Auto Managing Director Tom von Bonsdorff said the commencement of local assembly unit is a sign of the company's strong commitment in

"Each locally assembled Volvo Car will have same international standards as anywhere else in the world," he added.

said it has been witnessing 32 per cent growth in sales volume in in the past two years and the 2017 trend is as per its plan to achieve 2,000 units, at a growth of 25 per cent year-on-year.

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