Volvo to explore local assembly in India

Swedish car maker Volvo could explore the possibility of having a local assembly in India to bring down the taxes and make its models more affordable.

Tomas Ernberg, managing director, Volvo Auto India said, "We could look into a CKD (completely knocked down) operation in India but as of now there is no decision taken on this".

Ernberg was speaking on the sidelines of launching the new XC90, which is priced at Rs 64.9 lakh (ex-showroom, Mumbai).

 

Volvo's rivals such as Audi, BMW, Jaguar Land Rover and Mercedes-Benz has already established an assembly factory in India. The Swedish brand continues to import all its six models in India.

Established in 2007 Volvo, which is owned by Zhejiang Geely Holding Group of China, clocked sales of only 1,200 units last year. The company is targeting sales of 2,000 units this year.

 

Volvo Auto India has already sold 500 units during the March quarter. It had sold around 250 units during the same period last year.

The company is also expanding its retail reach to 22 dealerships from 14 presently across the country.