BENGALURU: Swedish luxury car maker Volvo on Thursday said it will commence assembly
operations of its cars in India by the end of this year as it seeks to shake up its competition including Mercedes-Benz, BMW and Audi.
The company has joined hands with Volvo Group India — the makers of premium trucks and buses — for their infrastructure and production licenses. The cars will be assembled at the existing assembly unit of Volvo Group India at Hoskote near Bengaluru.
The assembly operations would begin from the fourth quarter of the current fiscal, said Tom von Bonsdorff, managing director, Volvo Auto India. The XC 90, a premium SUV model, will be the first model to be assembled locally followed by other models at a later stage, Bonsdorff added.
“We had solid growth for several years now, therefore, we thought it was time to commence local operations,” Bonsdorff said pointing that the company envisages to double its share in the luxury segment to 10 per cent by 2020 and expect to sell about 2,000 cars this year.
Volvo plans to launch the V 90 Cross Country in August and the new XC 60, which has already been launched globally, in the last quarter of the current calendar year. With the launch of new cars this year, the company is going aggressive on both the product and network expansion side.