Swedish luxury car maker Volvo has announced that it will start local assembly of Volvo cars in India in 2017. The cars will be assembled at a plant in Bengaluru.

Cars based on Volvo’s SPA modular architecture will be the focus for the company’s  local assemble operations. The first model to be assembled at the Bengaluru facility will be the premium XC90 SUV. Other models will follow in due course of time.

Volvo Cars is working 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 for its local operations.

“I am pleased that as of this year we will be able to start selling Volvos that are Made in India,” said Håkan Samuelsson, president and chief executive of Volvo Cars. “Starting vehicle assembly in India is an important step for Volvo Cars as we aim to grow our sales in this fast-growing market and double our market share in the luxury segment in coming years.”

“We are delighted to announce the commencement of local assembly unit,” said Tom von Bonsdorff, Managing Director, Volvo Auto India. “It’s a sign of the company’s strong commitment in India. Backed by a robust sales growth, expanding network and an array of new product launches the local assembly will provide us an impetus to garner a sizeable segment share in the medium to long term. Each locally assembled Volvo Car will have same International standards as anywhere else in the world. With our continued efforts we are sure to build a strong foundation for our business in India.”

Volvo currently has a premium segment share of close to 5 per cent and aims to double this by 2020.

Photo for representation only