After 11 years of selling cars in India, Volvo has finally started local assembly from its Volvo Trucks’ plant near Bengaluru. The first car to be locally assembled is XC90 SUV. Only the diesel variants of the XC90 are locally assembled for now, while the T8 plug-in hybrid continues to be imported.
The company is also evaluating local assembly for other models that use the company’s SPA platform, such as the S90 sedan and the soon-to-be-Launched New XC60. The local assembly of the XC90 may not reduce the prices of the car, according to a company spokesperson.
“The last three years have been good for us in India and we are on-track to gain a bigger share of the segment,” Charles Frump, the newly appointed managing director for Volvo Auto India said.
Volvo sold 1,584 cars in India in 2016 and is on route to selling 2,000 units this year, which is a growth figure of over 25 percent year-on-year by end of 2017.