Volvo Cars, the Swedish luxury car company rolled out its first locally-assembled car, the luxurious XC90 from its plant in Bengaluru on Tuesday, October 10. Earlier Volvo had announced that it would start assembly operations in India in 2017.
The assembly operation is located near Bengaluru and focuses on models based on Volvo's SPA modular vehicle architecture. Apart from the XC90, other models on the SPA architecture are also slated for local assembly and an announcement on the same is expected at a later stage.
Volvo Cars is working together with Volvo Group India - the truck, bus, construction equipment and Penta engines manufacturer – for its assembly operations and is making use of Volvo Group India's existing infrastructure and its production facility near Bengaluru.
"It's a moment of great pride for all of us at Volvo Cars", said Charles Frump, the newly appointed Managing Director for Volvo Auto India. "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."
Volvo Cars' decision to assemble its models locally reflects the 'Make in India' initiative and benefits our customers. Volvo currently has a segment share of about 5 percent and aims to double this by 2020. Volvo Cars in India has had 32 percent growths in sales volumes in the past two years and the company hopes to achieve 2000 cars sales in 2017.