Volvo Car Group, owned by Zhejiang Geely Holdings of China, has set targets to increase sales to 30,000 units per annum, and in order to achieve this target, they plan on setting up their assembly unit in India.
Just like other luxury car makers in India who have managed to register an exponential growth in the Indian auto industry, Volvo too hopes the same, once their assembly plant is ready. This local assembly plant will allow the company to do away with the higher import duties and offering their products to customers at a more competitive price.
Volvo is yet to decide on location and investment plans, while concrete decisions are expected to be taken in the not too distant future. Volvo sold a total of 812 cars in India during the year 2012. This was against 9,375 cars sold by BMW, 9,003 cars sold by Audi and 7,138 cars from Mercedes Benz.