Volvo cars explores possibility of setting up plant in India

The company shall hike prices of its various models at least by 5 per cent or so in India from January next year, in the wake of rupee devaluation, inflation, and rising cost of imports, a company official said.

"It makes sense to set up a car manufacturing facility in India as we target sales of 20,000 units by 2020 here. A group within Volvo is conducting feasibility report of setting up a facility in emerging economies including India," Volvo Auto India Managing Director Tomas Ernberg told reporters.

"We shall be announcing a price hike of at least 5 per cent by January, which is in line to industry. The hike comes in wake of devalued rupee, higher import costs, and inflation," Volvo Auto India Director Marketing Sudeep Narayan said.

The proposed hike in luxury car segments also comes at a time when leading car manufacturers of country have decided to hike prices by 6 to 8 per cent from January. The company operating on completely built-up model (importing cars) is eyeing a 15 per cent share in the projected 150,000 units luxury car market of India by 2020.

The duty structure on CBU car units is around 108-110 per cent in India. Around 28,000 luxury car units

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