Volvo to join the bandwagon of car makers with a manufacturing plant at Sanand
Subscribe to NewsletterPlease fill your name and email ID to get our daily auto news mailer.
After observing the luxury car segment of the Indian auto market since quite a while, the Sweden based automotive giant, Volvo is now gearing up to take its first step in the country. It is expected that the auto manufacturing hub of the country, popularly known as the Detroit of the East, Sanand in Gujarat, may receive yet another plant from a car company.
According to the sources close to Chief Minister Office, Gujarat, Indian subsidiary of the Swedish car maker is on a land hunt to set up a plant to assemble its Completely Knocked Down units in the country. The company, which is backed by Geely Autombile of China, will be sending a team of its top honchos in August 2012 to meet Narendra Modi, Chief Minister of Gujarat.
Volvo Auto forayed into the Indian automotive market back in 2007 and as of now channel its cars through Completely Built Units (CBU) route in the country. However, if the scouting for the land in Gujarat ends up on a positive note, it will be the first executive luxury car marque to establish its plant in the state. This move from the brand is an attempt by the company to compete against the likes of Mercedes Benz, BMW and Audi. Even though the company has been able to offer its products in the country at an aggressive price, the localisation will further help it to reduce costs.
According to a source close to the company, “The company has identified two locations, one in Sanand and other near Chennai. But with the company's major holding in Chinese hands and given growing ties between Gujarat and China, we hope it will be Sanand.” At the same time, the officials of Volvo Auto refused to have zeroed in on Sanand.
Managing Director, Volvo Auto India, Tomas Ernberg, said, “We are looking aggressively at the Indian luxury car market and aim at having a 15% share in the segment by 2020. The decision to identify a location is taken by our team in the US who are looking at the various options. Nothing has been finalized yet.”
Congratulations Mr Tomas Ernberg, you have no doubt made a good choice. Volvo will have a bright future. No wonder Chinese have got it right too.July 21 , 2012 by K A Atmacharan
Comments on this article
- Petrol prices in India increased by Rs. 2 per litre
- Honda Amaze: The brand makeover model for Honda India
- Maruti Suzuki introduces CNG variant of Ertiga for Rs. 6.5 lakh
- General Motors eyes North East as next potential market
- Tata Indigo eCS facelift to be unveiled soon in India
- 2013 Tata Nano facelift to enter Indian market this month
- New Mercedes-Benz E-Class launch in June 2013
- A look of Mahindra Verito Vibe's competition in India
14 June 2013, 11:18 IST by CarTrade Editorial Team
Datsun, the completely owned brand of Japanese auto maker Nissan, will be soon launching its new entry level hatchback in the Indian market. Reportedly, the company is all set to make its...
13 June 2013, 11:01 IST by Roger DSouza
The largest utility vehicle manufacturer in India, Mahindra & Mahindra has been making plans to gain a bigger chunk of the fast growing Sports Utility Vehicle (SUV) segment in the market. In...
11 June 2013, 11:48 IST by Roger DSouza
Hironori Kanayama was appointed as Chief Executive Officer (CEO) of Honda Cars India Limited (HCIL) in April, 2012. Under his direction the Indian subsidiary of the Japanese car maker has seen...
12 June 2013, 12:26 IST by CarTrade Editorial Team
Skoda, the completely owned division of German auto Group Volkswagen, seems to be preparing for the launch of a reworked model of Octavia. Interestingly, the latest generation model of Octavia has...
Under: Skoda Octavia
Refreshed Tata Nano to be launched on June 19
Tata Motors, India's largest auto maker, is all set to introduce a refreshed version of its iconic hatchback Nano in the domestic auto market on June 19, 2013. The reworked model is expected
Volkswagen Cross Polo likely to be introduced in August 2013
Volkswagen, the domestic arm of German auto maker, seems to be preparing for the launch of Cross Polo in the Indian auto market somewhere in August this year. Reportedly, the model has been
Nissan Sunny gets DC Design treatment
Mid-size sedan Nissan Sunny has become the latest car to get a stunning interior makeover by DC Design, India's top luxury automobile design company. The customised Sunny model gets completely
Volvo India foresees 4.5 per cent share in luxury car market by 2013 end
Volvo Auto India, the completely owned domestic arm of Swedish luxury car maker, is looking forward to grab a share of 4.5 per cent in the luxury car market of the Indian auto industry before the
Volvo V40 Cross Country to be launched on June 14, 2013
Volvo India, the well known Swedish auto maker, is all set to introduce its V40 Cross Country model in the domestic auto market on June 14, 2013. Reportedly, the model will be launched at the auto
Volvo V40 Cross Country Set to be Launched in India on June 14
The Sweden-based automotive giant, Volvo, is all set to launch its V40 Cross Country Crossover Utility Vehicle in India on June 14, 2013. After the official launch, the car will be made available
Volvo V40 crossover to mark its Indian debut on June 14, 2013
The Indian arm of Volvo, a well-appreciated Swedish luxury automobile marque, is set to launch its much awaited V40 Cross Country crossover in the domestic market on June 14, 2013. The company is
Launch of Volvo V40 Cross Country expected by June end
Volvo Cars India, the domestic arm of Swedish auto maker, seems all prepared to introduce its new model, V40 Cross Country, in the Indian auto market. Industry experts are of a view that the model