Volvo has joined the local assembly bandwagon with its first ever made-in-India vehicle, the XC90, rolling off the assembly line today. The Swedish automaker anticipates doubling its market share by 2020 from the current share of 5 per cent. And according to Volvo, the commencement of local assembly will come in handy in achieving the same.
Volvo first announced its plan for beginning local assembly in India in May 2017. The Volvo XC90 will soon be followed by the S90 sedan and the upcoming second-gen XC60 SUV in the near future. For local assembly, the existing facility of Volvo Group India in Bengaluru has been used, which already produces trucks, buses, construction equipment and Penta engines.
Charles Frump, Managing Director, Volvo Auto India said: “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.”
Local assembly is generally supported by reduction in the overall price range, but it is unlikely to happen in the case of Volvo. Especially since the automaker has already priced its products, including the XC90, competitively.