Sweden based car manufacturer, Volvo cars have announced their plans to start assembling cars in India. At an event in Mumbai on Thursday, the popular car manufacturer brand announced that it is looking to start the assembling operations before the year ends.
Volvo first launched its cars in India in 2010. However, until now, the Swedish brand has been importing their cars rather than assembling them in the country. A few other players in the luxury segment, including Mercedes Benz, BMW and Audi have been assembling their cars in India.
With this, the company is looking to make their presence felt in growing luxury car market in India. Luxury car market in India is expected to grow on a brisk rate in the coming time, thanks to the strong economic growth of the country.
Tom Von Bonsdorf, senior executive – India operations stated in an interview that Volvo has seen a positive growth in sales in last two years. With plans of growing their marketshare to at least 10% in Indian luxury car segment, Volvo has decided to initiate Indian operations. Volvo currently enjoys a 5% marketshare in luxury car segment in India, thanks to some of the launches in last couple of years and aggressive marketing.
The assembling unit will be located near Bengaluru. Volvo will work on models based on its modular vehicle architecture. Currently, the company sells 9 models across India.
Speaking on the development, Hakan Samuelsson, President & CEO – Volvo cars termed this as an important step and added that Volvo is eying a significant growth in India in next few years. The fast growing market and economy of the country allows Volvo to have a go at the bigger scenario.