Volvo Cars will produce cars in India
- Swedish carmaker Volvo Cars (a subsidiary of the Chinese group Geely) has announced that it will start producing cars in India, hoping to capture part of the local demand for Premium cars. Sales figures for Premium brands are not officially known, but Inovev estimates their volume at 25,000 / 30,000 units in 2016 (in a market of 3.67 million vehicles).
- Sales figures for Volvo Cars in India are estimated at 1,400 units in 2016 (all imported), which is 5% of the premium market in India. The Swedish manufacturer wants to double this figure by 2020 (to 10% of the Indian Premium market) by manufacturing locally from kits (CKD), which would avoid import taxes. Today, the best-selling premium brands in India are BMW, Mercedes and Land Rover that already produce CKD in India, precisely to avoid import tax.
- Volvo Cars has signed an agreement with truck manufacturer Volvo Trucks to install its own car assembly line in the Hoskote plant near Bangalore where Volvo Trucks produces trucks and buses.
- The manufacturer believes that India has great potential for development. Volvo Cars already manufactures cars in Sweden, Belgium, China, Malaysia and is expected to start production in the United States in 2018.
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