Volvo Cars had set out on making they're first locally assembled car a while ago, and now as promised the first XC90 rolls out from their Bangalore plant today. According to Volvo’s bean counters, the Indian market showed all the signs of growth required for a luxury brand such, and their target of achieving a 10% market share by 2020 was set in place to build their cars locally.
The Assembly operations are located near Bengaluru in South India and are focused on models that are based on the Volvo’s SPA modular platform. Apart from the XC90, which begins to roll out today, are based on the SPA architecture and are slated for local assembly, followed by an announcement on the same.Volvo Cars is working together with Volvo Group India - the truck, bus, construction equipment and Penta engines manufacturer – for its assembly operations and is making use of Volvo Group India’s existing infrastructure and production licenses near Bengaluru.
"It’s a moment of great pride for all of us at Volvo Cars”, said Charles Frump, the newly appointed Managing Director for Volvo Auto India. “The roll-out of first locally assembled Volvo Car speaks volumes for the company’s commitment to grow further in India. The last three years have been good for us in India and we noticed a positive and encouraging growth in terms of increased segment share, world-class product and new dealer appointments.With global standards in quality, we are a formidable luxury car company in India and on-track to gain a bigger share of the segment.”
Based on the ‘Make in India’ the directives to assemble in India will benefit customers, while the Indian market segment remains relatively small, it is likely to grow rapidly in the coming years. Volvo currently holds a respectable 5% market share currently but intend to grow this in the next two years by making their products increasingly accessible in terms of price.