High growth drives Volvo to weigh local assembly options

Volvo sold about 1,600 cars in India in 2016 calendar year

Two consecutive years of high double-digit growth in the Indian market has prompted Swedish luxury car maker Volvo to look at expanding operations with a possible local assembly. All Volvo cars sold in India are now imported as completely built up units and attract 120 per cent in the form of various duties. Local assembly would bring duties down to 70 per cent and help the company grow.

“We would look at ways to start local assembly. There are different options for starting production. One of the ways could be through a third party with an existing infrastructure who could