Volvo to assemble cars in India

Volvo Cars India has announced, it will begin assembling its cars in India and begin marketing them as Made in India Cars.

Volvo XC90 premium SUV would be the first model to be assembled in India and would be followed by other models based on Volvo’s SPA modular vehicle architecture.


Volvo Cars will leverage Volvo Group’s (the truck, bus and construction equipment manufacturer) existing infrastructure in India, near Bengaluru to begin assembling cars in India.

“I am pleased that as of this year we will be able to start selling Volvos that are Made in India,” said Håkan Samuelsson, president and chief executive of Volvo Cars. “Starting vehicle assembly in India is an important step for Volvo Cars as we aim to grow our sales in this fast-growing market and double our market share in the premium segment in coming years.”

“We are delighted to announce the commencement of an assembly unit,” said Tom von Bonsdorff, Managing Director, Volvo Auto India. “It’s a sign of the company’s strong commitment to India.”

Importing of cars as CKD (Completely Knocked Down) kits and then assembling them in India would lead to import tax saving and thus should help Volvo Cars to be priced to lower in India.

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