Volvo Auto India, the passenger car arm of Volvo, which is a late entrant into the Indian luxury car segment, has hinted at the possibility of setting up of a Completely Knocked Down (CKD) plant.
The company, which has pitted itself against German majors such as Audi, Mercedes and BMW in the 35,000 units per annum Indian luxury car market, is targeting a 10% market share by 2020. By that time India is expected to register a sale of 100,000 units annually, said Tom von Bonsdorff, managing director, Volvo Auto India.
In an exclusive interview with FE on Friday, Bonsdorff who was in Chennai for the very first delivery of Volvo XC90, said: “We are not ruling out setting up of a CKD plant in India. But there is no immediate plan for this as the volumes do not call for it. What we sell in India are vehicles imported under the CBU format from our parent in Sweden as well from our plant in Belgium. But we may look at it over the next few years. We have an assembly plant (CKD) in Malaysia which can produce anywhere between 3,000 units to 10,000 units per annum depending upon the demand there. Though we grew 30% in 2014 to touch 1,200 units, we are expecting a moderate 15% growth in 2015.” Volvo XC90 has received 250 bookings in India so far. “VolvoXC90 has been awarded five stars and achieved top ratings in its 2015 Euro NCAP (New Car Assessment Programme) tests.” Euro NCAP provides consumers with an independent assessment of the safety level of the most popular cars sold in Europe.
On the new cars/variants for next year, he said: “We have lined up a new car as well three to four variants of existing models in 2016. We have also plans to add three more dealers by December to take it to 18 and would double the same by 2020.”