The Karnataka government has welcomed Volvo Cars management’s move to commence its car assembly in the State.
“I am delighted that one of the most leading automobile company Volvo is starting its car assembly in Karnataka,” said R V Deshpande, Karnataka Infrastructure Development Minister.
“This venture will boost the industrial prospects of the state and add to employment creation. Our government will extend fullest support and co-operation to Volvo in this endeavour,” he added.
The company in a release last week said assembly operations will be located at Hoskote near Bengaluru and focus on models based on Volvo’s SPA modular vehicle architecture.
The first Volvo model to be assembled here is the XC90 premium SUV. In establishing its assembly operations, Volvo Cars is working together with Volvo’s other group - the truck, bus, construction equipment and Penta engines manufacturer, and will make use of Volvo Group India’s existing infrastructure and production licences near Bengaluru. No further details like financials were disclosed.
Håkan Samuelsson, President and CEO, Volvo Cars, said: “I am pleased that as of this year we will be able to start selling Volvos that are Made in India.”
“Starting vehicle assembly in India is an important step for Volvo Cars as we aim to grow our sales in this fast-growing market and double our market share in the luxury segment in coming years.”
While the Indian luxury car market is still relatively small, it is forecast to grow rapidly in the coming years.
Volvo currently has a premium segment share of close to 5 per cent and aims to double this by 2020.
Volvo Cars sales in India touched 1,600 units level in 2016 compared to 1,423 units in 2015.