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Swedish luxury car manufacturer Volvo has begun assembling cars in India. This move is expected to make Volvo cars cheaper as locally assembled cars through the completely knocked down (CKD) kit route are taxed lower than full CBU (completely built unit) imports.

Charles Frump, MD, Volvo Auto India at the First 'Made In India' Volvo car roll out

The first Volvo car to be locally assembled is the Volvo XC90 SUV. It has rolled out from Volvo’s new car assembly plant near Bangalore. This factory is a part of the larger vehicle manufacturing plant that Volvo has at Hosakote, near Bangalore. The plant also produces buses, earth movers, engines and trucks.

The Volvo XC90 SUV is the automaker’s flagship car. It comes with 2 engine options – a turbo diesel and a turbo petrol-hybrid. The diesel version features a 2 liter motor with 225 Bhp-470 Nm. The turbo petrol hybrid features a 2 liter engine and an 87 Hp electric motor. Combined power and torque is rated at 407 Bhp and 640 Nm. Both engines get an 8 speed automatic gearbox, which drives all four wheels.  The diesel starts at 76 lakhs while the hybrid is priced at 1.27 crores

More Volvo cars will join the CKD assembly operations, but the brand plans to keep assembly limited to the SPA (scalable platform architecture) models. This also means that older platform cars like the V40, S60 and XC60 won’t be assembled here. Instead, Volvo will assemble their replacement models, which are expected to join the SPA platform soon. The other SPA cars sold here are the S90 sedan and V90 station wagon. These cars may soon be CKD assembled.

Volvo Auto India’s newly appointed MD, Mr Charles Frump 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.With global standards in quality, we are a formidable luxury car company in India and on-track to gain a bigger share of the segment.

By 2020, Volvo wants to double its market share in India, from the present 5 %. The new assembly operation is meant to help Volvo in achieving this target. The company is confident of achieving its target of selling 2,000 cars in India during 2017.

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