The Volvo XC90 will be assembled in India

22 May 2017

Interesting geography: a company from Sweden owned by the Chinese, will start assembling its cars in India

Volvo Cars thanks to the generous financial support of the Chinese manufacturer Geely with each passing day it becomes more powerful, rapidly updating the range and comes at such a high level as never before. Having production facilities in Sweden, Belgium, China and soon in the USA, says that the automotive business unit of the Volvo is definitely thriving. More recently, Swedish announced that it is now and India will be added to this list. In addition, it was confirmed that according to the principle of CKD in India will be assembled crossover XC90. Production will start this year, and the first Volvo will be taken to the local market by the end of 2017.

CKD means that the automaker will supply the kits of the luxury SUV of the middle class in the South Asian country, after which Volvo Auto India will collect, as a designer, with the strictest observance of the instructions. The Assembly will be established in the South India, near Bangalore. There already are collecting trucks and buses Volvo. A little later, the Swedes plan to launch production of other models on the SPA platform, which forms the basis for the series 90 and the XC60.

"I am delighted that this year we will be able to start selling the Volvo cars produced in India. Launch of Assembly of cars in India is an important step for Volvo Cars, as we strive to increase our sales in this growth market and to double its market share in the premium segment in the coming years," said Hakan Samuelsson, President and chief Executive officer of the company.

Undoubtedly, the main reason why Volvo decided to invest in India is a growing demand for premium cars in this region. Of course, in comparison with Europe and USA sales are still small, but in this business it is all about perspective, and according to analysts, the prospects for the development of the premium segment in India is very encouraging.

In 2016, Volvo has sold 1400 cars in India, and it is more than the previous year by 24%. Today the Swedish firm owns 5% of the market in the premium segment and, if the current rate of development, expect to double this result by 2020.

According to analytical data, the car market of India in the near future to face a rapid growth, because some manufacturers are beginning to establish links with local companies. Czech Skoda, for example, is actively working with Tata to issue a joint model.