Volvo India to Manufacture More Cars Locally:
Volvo India witnessed a record 28% annual growth in its sales volumes in 2017.
Within a year of setting up its plant, Volvo Car India is planning to accelerate its manufacturing grip in the country. The company expects majority of its products to be locally manufactured in the coming two years as it aims to give strong competition to its German rivals — Mercedes, BMW and Audi.
The company is likely to begin production of another car model at its Bangalore facility in the second half of 2018 and eventually add more models under the local production gradually. Currently, it produces the seven seater SUV XC90 and S90 in the country.
Volvo Car India MD Charles Frump, who was here in Sweden to take part in the CEOs round table with Prime Minister Narendra Modi at the Stockholm city hall, told, “We are assembling two of our cars — XC90 and the latest inclusion this month S90 — at our Bangalore plant. While the former contributes 20% to our sales volume in India, the S90 comprises 10%. So, a total of 30% of our sales in India are manufactured from our plant there. However, we would like to produce at least half of our volumes in India by producing a third car.”
Refusing to give any specific details, Frump said, “It may be a shorter or longer version on our current Scaleable Platform Architecture (SPA).” To further expand its presence in India, Volvo Car will be launching its smallest SUV XC40 in the third quarter of 2018, which is expected to help the brand sustain its strong double digit growth game and build its market share amidst strong competition.
Volvo marked a record 28% annual growth in sales volumes, ending the year in December 2017 with highest ever 2,029 retails. The company aims to double its segment share to 10% by the end of 2020.
The company also plans to expand its plug-in hybrid and electric vehicle profile in India. “In 2019, every new car that we launch would be electrified. We will not have internal-combustion-engine only cars. Our vision is that by 2025, we would have launched one million electrified cars globally. This is our shared vision with India as the country plans to achieve e-mobility ambition by 2030. But we feel there is a gap in policy in India. There is no tax incentive for hybrid or plug-in hybrid cars,” he said.
Currently there are 8 Volvo cars available for sale in India. The price of lowest category Volvo (V40 model) is at Rs 27.69 Lakh and the highest price model is the XC90 at Rs 1.31 Cr. Upcoming Volvo car launches include XC40. Volvo claims that the XC40 offers a clutter-free cabin along with inclusion of multiple smart and functional storage compartments. For example, XC40’s door pockets have been designed in a way such that they can even hold an average size laptop, tablet, and a couple of liquid bottles. Volvo has moving speakers from the door and developed a world-first, air-ventilated dashboard-mounted subwoofer in the car. The centre console also provides a smartphone mobile holder, a trash bin and compartment for tissues.