Volvo is aiming to introduce locally produced XC90 by the end of 2017.
The local assembly operations will be carried out at Volvo Group’s Hoskote plant near Bengaluru.
Volvo’s locally built XC90 model will hit Indian shores by the end of this year. The company officially confirmed the news revealing its plans to assemble cars locally in India. While XC90 will be the first model to follow the CKD route,other vehicles in Volvo India’s line-up will also take the CKD route. As mentioned above, Volvo is aiming to introduce locally produced XC90 by the end of 2017.
The local assembly operations will be carried out at Volvo Group’s Hoskote plant near Bengaluru. The manufacturing unit in the suburbs of Begaluru is currently used for manufacturing trucks and buses, under its commercial division.However, Volvo plans to optimize the plant for assembling passenger vehicles under the contract manufacturing agreement. While the XC90 will be the first model to be assembled here, Volvo is planning to start local assembly of all its models based on the Scalable Product Architecture (SPA) platform in future. Read – Volvo S60 Polestar: Fairly Ferocious yet Remarkably Composed
Currently, the carmaker pays heavy taxes on its vehicles, albeit with its models taking the CKD route, it will save on the lofty taxes paid on imported vehicles. This would enable Volvo to cut down on the pricing of its cars. Just so you know, Volvo cars are priced competitively compared to its counterparts, which indicates slight drop in pricing with this move. Picture Gallery: Volvo XC90 T8 Hybrid Exterior & Interior Details
With drop in pricing, the company expects to witness rise in demand for its locally assembled vehicles. The Indian premium segment is expected to grow substantially in the coming years and it seems like the right time for Volvo to invest in the market.
The Swedish auto major accounts for 5% of market share in the luxury segment, with this move the company is aiming to double it in the next three years.