Swedish luxury car company Volvo Auto India (VAI) on Thursday announced its plans for vehicle assembly operations in India to further strengthen the fast-expanding premium car segment.
Volvo will begin its assembly operations in Bengaluru, and will focus on models based on Volvo's SPA modular vehicle architecture.
In establishing its assembly operations, Volvo Cars is working together with Volvo Group India - the truck, bus, construction equipment and Penta engines manufacturer, and will make use of Volvo Group India's existing infrastructure and production licenses near Bengaluru.
To begin with, Volvo will first work on XC90 premium SUV apart from the additional models, which are slated for local assembly at a later stage.
"We aim to grow our sales in this fast-growing market and double our market share in the luxury segment in coming years," said president and CEO of Volvo Cars, Hakan Samuelsson.
Adding to this Managing Director Volvo Auto India, Tom von Bonsdorff said that it is a sign of the company's strong commitment in India, which is backed by a robust sales growth, expanding network and an array of new product launches.
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"Each locally assembled Volvo Car will have same International standards as anywhere else in the world. With our continued efforts we are sure to build a strong foundation for our business in India," added Bonsdorff.
While the Indian luxury market is still relatively small, Volvo's decision to start assembly in India and market its vehicles as 'Made in India' fits well to the industry.
Currently, Volvo has a premium segment share of close to five percent and aims to double this by 2020. The car-maker has witnessed a robust 32 percent growth in sales volumes in the past two years, and aims for the same in 2017.