Volvo Cars has just announced that they will begin local assembly operations in India sometime this year. The facility is jointly used by Volvo Group that manufacture truck, bus and construction equipment and is located near Bangalore in southern India. All resources will be focussed on producing vehicles based on the SPA architecture.
The first Volvo model to be assembled is the XC90, with additional models to follow at a later stage. The Swedish carmaker hopes to capture a portion of the country’s fast-expanding appetite for premium cars, and is in line with the Indian government’s initiative to promote their manufacturing sector.
Volvo currently has a five percent market share in India and plans to double this figure by 2020. In the first four months of 2017, Volvo saw a 35 percent increase in sales compared to the same period last year.