Volvo studying India assembly, decision expected by year-end1 min read . Updated: 03 May 2015, 02:57 PM IST
The plan is a part of the company's ongoing efforts to look at possibilities of locally assembling vehicles in different parts of the world
New Delhi: Swedish luxury carmaker Volvo, which has been exploring possibility of local assembly in India, is expected to take a decision this year. The plan is a part of the company’s ongoing efforts to look at possibilities of locally assembling vehicles in different parts of the world.
“An industrial team based out of Sweden looks out for opportunities across the world. It is also looking at the possibility of having local assembly in India," said an industry source. The decision to start local assembly of vehicles in India could be taken during the current year, the source added.
The company, which has been selling luxury vehicles in India through imports, is keen to start assembling in the country to bring down prices and shore up volumes. Volvo entered the Indian car market in 2007 and sells models, including sedans S80 and S60, SUVs XC60 and XC90, along with V40 Cross Country. Earlier this year, sources had stated that Volvo Auto India made initial contacts with Mahindra & Mahindra, Hindustan Motors and General Motors India to check the feasibility of utilising the manufacturing plant of one of them to assemble some of its models in India. At that time, Volvo’s spokesperson had declined to comment.
While M&M had also declined to comment, General Motors India had termed the issue as speculation and HM had said that they have not been approached by anyone.
The company, which sold 1,200 units last year, is looking at around 70% growth to touch 2,000 units during the current year on sales network expansion and product launches. 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 plans to launch models, including petrol variant of V40 Cross Country, V40 hatchback, S60T6 sedan and XC90 sports utility vehicle this year. The company is also looking to expand its sales network. By the end of this year the carmaker plans to have around 22 dealerships across the country. There were only 5 outlets a couple of years back.
By 2020, the company aims to sell 10,000 units and capture around 10% of the Indian luxury segment, which is expected to touch 1,00,000 lakh units by that time. The luxury car segment in the country, at present, stands at around 32,000 units per annum.