Volvo will commence assembly from a facility near Bangalore.

The carmaker has stated that it will start local vehicle assembly in India in 2017. The assembly plant will be located near Bangalore and will focus on models based on Volvo’s SPA modular vehicle architecture. The first car from this facility will be the XC90 premium SUV. Additional models slated for local assembly will be announced at a later stage.

Volvo Cars is collaborating with the Volvo Group, the truck, bus and construction equipment manufacturer, and will make use of the Swede’s existing infrastructure and production licenses near Bangalore. “I am pleased that as of this year we will be able to start selling Volvos that are made in India,” said Håkan Samuelsson, president and chief executive of Volvo Cars.

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

While the Indian premium car market is still in its nascent stages of growth, experts forecast it to grow rapidly in the years to come. Volvo currently has a premium segment share of close to 5 per cent and aims to double this by 2020. In 2016, the carmaker sold over 1,400 cars in India - 24 per cent more when compared to figures from 2015. The carmaker’s year-on-year sales growth in the first four months of 2017 amounted to over 35 per cent.

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