Volvo Cars announced that it will start vehicle assembly operations in India in 2017. The move is expected to help the company for further growth in the premium car segment in India.
According to Moneycontrol, the assembly operations will be located near Bengaluru in southern India and focus on models based on Volvo’s SPA modular vehicle architecture. The first Volvo model to be assembled there is the XC90 SUV. Additional models slated for local assembly will be announced at a later stage.
In establishing its assembly operations, Volvo Cars will work together with Volvo Group India – the truck, bus, construction equipment and Penta engines manufacturer, and will make use of Volvo Group India’s existing infrastructure and production licenses near Bengaluru.
Volvo’s decision to start assembly in India and market its vehicles as ‘Made in India’ fits well with a similarly named initiative launched by the national government several years ago, which seeks to highlight and promote Indian manufacturing prowess.
