Volvo is prepping up to set up a new assembling plant In India. The Swedish company will assemble the cars locally in India and it has announced its strategic alliance with Volvo group India (trucks & buses). However, the plant will not manufacture the cars but will assemble them in India. Volvo will use the Volvo group of India (trucks & buses) plant in Hosur, Bengaluru.
In this plant, the Volvo group is currently manufacturing luxury buses and trucks and now it also produces cars. The plant will first rollout Volvo XC60 and then it will move to other big and more models. Volvo has taken this step to improve its sales in India. India is a fast growing country and percentage of people buying premium cars has been increasing rapidly.
Volvo will fight against its rivals like Mercedes Benz, BMW and Audi. Volvo is now going in the footsteps of its German rivals as they are assembling the cars locally in India which are helping them to produce more units at fewer prices. Volvo is looking forward to improve its business in India as currently Volvo is importing cars to India from Sweden and Belgium.
This was making the price of Volvo cars go higher and less volumes of cars. By using the plant in Bengaluru, Volvo can increase the volumes and can also reduce the final price of the cars. In Indian luxury car segment, Volvo is having just 5% share and the Swedish company is looking to double the number by the end of 2020. Volvo has witnessed a massive growth in its sales in the past two years.