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Volvo might assemble cars in India

Volvo might assemble cars in India
Pratheek Kunder Pratheek Kunder Monday 15 May 2017, 11:58 AM

Volvo is planning to assemble cars in India. In order to do this, the company might set up an assembly facility in the country. 

According to a report on moneycontrol, the Swedish car maker would make an announcement in this regard 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 bring down the pricing. As a result, the sales of the Volvo cars is bound to increase, thus helping the company corner some of the market share from the Germans.

The Swedish car manufacturer has been talking about setting up a plant since 2012, but due to low volumes in the luxury car segment, the plans were delayed. 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 a two per cent dip in the overall sales in same time period.

Stay tuned to CarTrade as we bring you more details on this Volvo development

 

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