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Volvo XC90 web

Volvo Car Group have announced assembly operations in Bengaluru; set to commence this year itself.

While we don’t want to use the word ‘inevitable’, it was only a matter of time before Volvo Auto India would have create a base of operations in the country, owing to manifold growth in sales over this past decade of CBU sourcing.

Volvo Car Group began their Indian innings back in 2007 with the S80 luxury sedan and XC90 seven-seater SUV. While those did a few numbers owing to their competitive pricing – the S80 V8 AWD with its 315-PS motor was, and still remains, the least expensive V8 ever to go on sale here – and identical engine choices, they didn’t quite make the dent in the market they’d hoped for. That all changed with the arrival of the XC60 five-seater cross-country SUV, which saw more encouraging numbers. The S60 came next, followed by the V40 duo. However, what really got the ball rolling was the introduction of the second-gen XC90 based on the company’s new SPA (Scalable Product Architecture) platform – one that underpins all their large models today.

Volvo have confirmed that that have reached an agreement with Volvo Group – makers of trucks, buses and construction equipment – to begin assembly at their facility in Bengaluru. No details about the deal have been divulged yet, except that the first car to be assembled there via CKD will be the XC90 – their most popular model here – by the end of this year. Additional models will be announced at a later stage. These, of course, include the S90 luxury sedan, the incoming V90 Cross Country luxury estate, as well as the all-new XC60 that was recently unveiled – all of which utilise the SPA platform.

Volvo XC60 web

The all-new 2018 XC60 is also on the SPA platform

Håkan Samuelsson, president and chief executive of 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 premium segment in coming years.”

Tom von Bonsdorff, Managing Director, Volvo Auto India, said, “We are delighted to announce the commencement of an assembly unit. It’s a sign of the company’s strong commitment to India.”

With the Swedish brand having celebrated their 90th anniversary, creating a manufacturing hub in India is an apt move. The localisation of assembly would make it fair to except a price drop, but it is noteworthy to mention that Volvo Auto India have managed to price their offerings thus far, even as CBUs, rather competitively. On a different note, this move will ensure lower latency in obtaining a personalised model and also positively affect the availability of spare parts.

Volvo Auto India presently retail the V40 premium hatchback, the V40 Cross Country compact crossover, the S60 sport-luxury sedan, the S60 Cross Country all-road sedan, the S90 luxury saloon, and the XC90 luxury seven-seat SUV, with the XC60 crossover SUV also on offer. The company operates out of 17 dealerships in South Delhi, West Delhi, Gurgaon, Ahmedabad, Surat, Mumbai, Chandigarh, Coimbatore, Hyderabad, Chennai, Bangalore, Kochi, Vishakhapatnam, Kolkata, Vijayawada and Jaipur, with the newly-appointed Pune dealer, Flyga Auto, commencing operations tomorrow. A new dealership is set for Lucknow as well.

Volvo V90 Cross Country web

The V90 Cross Country will be launched in India in the near future

Story: Jim Gorde

 

About the author: Jim Gorde

 

Automotive Correspondent at Bike India and Car India.
Believes that learning never stops. Loves V8 engines as much as a good breakfast.
t: @BikeIndia / @CarIndia

 

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