Volvo is planning to assemble cars in India. In order to do this, the company might set up an assembly facility in the country.
As per a report in moneycontrol, the Swedish car maker would make an announcement regarding this in the next few weeks. Currently, all eight Volvo cars are sold as completely-build-up (CBU) units which attract heavy taxation. This taxation makes the cars very expensive which makes prospective Volvo customers look at other luxury brands. Assembling the cars in India would reduce taxation, which will directly get the pricing down. As a result, the sales of the Volvo cars is bound to increase, which will help the company steal some market share from the Germans.
The Swedish car manufacturer have been talking to set up a plant since 2012, but due to low volumes in the luxury car segment, the company delayed those plans. However, it looks like the parent company is now convinced about the growth in India and wants to play a bigger role. Last year, Volvo grew by 11 per cent with 1584 units which is pretty good considering the fact the segment leader, Mercedes-Benz saw two per cent dip in the overall sales this regard in the next few weeks.
Stay tuned to CarTrade as we bring you more details on this Volvo development.
