As announced back in May, Volvo Cars has rolled out locally-assembled XC90 from its plant in Bengaluru today.
India’s fast-expanding luxury segment has led to the company’s decision to locally assemble its flagship SUV, and the company aims to achieve 10 per cent segment share by the end of the decade. The company currently holds 5%.
The Bengaluru plant will focus on models based on Volvo’s SPA modular vehicle architecture. Apart from the XC90 more models on the SPA architecture are slated for local assembly and an announcement on the same will happen at a later stage.
Volvo Cars has partnered with Volvo Group India – the truck, bus, construction equipment and Penta engines manufacturer. The company makes use of Volvo Group India’s existing infrastructure and production licenses near Bengaluru.
Charles Frump, the newly appointed Managing Director for Volvo Auto India said: “It’s a moment of great pride for all of us at Volvo Cars. The roll-out of first locally assembled Volvo Car speaks volumes for the company’s commitment to grow further in India. The last three years have been good for us in India and we noticed a positive and encouraging growth in terms of increased segment share, world-class product and new dealer appointments.”
Volvo Cars said that the brand had a robust 32 per cent growth in sales volumes in the past two years and the 2017 trend is as per the company’s plan to achieve 2,000 cars, which will witness a growth of 25 per cent year-on-year.