Volvo Cars Starting Assembly Operations in India This Year

It's a good sign when an automaker begins production and assembly in new markets. This is especially true for one like Volvo, which had been in a bit of a slump for the last few decades. They've developed their product range extensively and the new 90-series models are proving to be a huge hit, with the upcoming XC60 and 40 models also looking to be quite popular when they make it to market. Today Volvo Cars has announced that they will be beginning assembly in India, a sign that the Swedish brand is confident and on track with their expansion. 

Volvo Group already has existing infrastructure and production facilities in Bangalore, although these are primarily used for buses, trucks, and construction equipment. To have an assembly plant in India for Volvo Cars means that they can begin to sell Volvo models that are truly "Made in India"- a spin off the "Made in Sweden" tagline that is now used widely in Volvo's marketing materials. The first Volvo Cars product to be assembled in India will be the XC90, followed by other models based on Volvo's SPA platform.

There will be additional models to be assembled in due time and will be announced in the future, but for now the XC90 will be the first and foremost. The Indian premium car market is still relatively small, but is expected to grow rapidly in the coming years. Volvo currently holds a premium segment market share of close to 5%, and are expecting to double this figure by 2020. Between 2015 and 2016 their sales figures jumped by 24%, and this year has already seen a 35% increase over 2015 in the first 4 months.