Volvo Plans New Car Plant in India

Volvo had announced that it looks forward to expanding its operations in India. It has set its foot forward in the same directions and plans to enter the passenger car market in the country. It has already set a strong foothold in the commercial vehicle market in India and now plans to set up a new car plant. It will set up a new assembly unit in the country in next 18 months.

Currently, Volvo cars are being imported as completely built units or CBUS's which attract a hefty 112 percent import duty on CBUs. The new assembly plant will enable it to lower its passenger car prices in a price sensitive car market like India. Volvo is also witnessing a rise in demand for its passenger cars but the inquiries often do not convert into sales due to highly priced models that attract import duty.

Setting up an assembly plant in India will enable the company to bring its car prices by as much as 30 percent. Thus, car falling in the price range of Rs. 40 lakh or more will cost less by few lakh rupees. Volvo plans to become a serious player in the luxury car segment in India and expects to double its market share by 2009. It has recently launched its XC90 and S80 luxury sedans in Gujarat.

• Volvo unveils the XC60 plug-in hybrid at Detroit Auto Show           January 12, 2012
• Volvo to establish R & D center in India with investment of Rs 400 crore           December 30, 2011
• Full Size Sedan of the Year Award goes to Volvo S60           December 21, 2011
• Volvo S60 receives ‘full size luxury sedan of the year award’           December 20, 2011
• Volvo plans to hire more than 10,000 employees by 2020           November 29, 2011
• Upcoming V60 model will be sold as an imported car in China, announces Volvo           November 25, 2011
• Volvo to cash on green concept cars for expansion           October 31, 2011
• Volvo V60 Plug-in Hybrid to launch in Europe next year           October 20, 2011
• Volvo India enhances its brand value with a new showroom in Kochi           October 18, 2011
• Volvo plans to inject Rs 400 crore in India operations           October 14, 2011
• Volvo’s new fuel efficient D3 diesel engine with Start/Stop technology           August 24, 2011
• Volvo intends to triple its sales figures to 500 units           August 17, 2011
• No plans to assemble cars in India in near future: Volvo           July 26, 2011
• Volvo India to boost sales with stripped-down versions of its cars           July 23, 2011
• Volvo S60 bookings cross 100 unit mark           March 19, 2011