Volvo Cars have ambitious plans for Indian markets. This Swedish luxury auto maker is planning on changing operations wherein they have plans to witness an increase in sales. In recent years, car buyers in India are showing more affinity for luxury cars and premium vehicles, a segment which till quite recently was considered beyond affordability.
Top auto makers such as Mercedes, BMW, Audi, Jaguar Land Rover, and Volvo are all experiencing this changing trend as is seen in last year’s sales figures which clearly crossed the 30,000 unit mark. Luxury markets in US and Europe are not as positive as compared to markets of India and China and hence the decision by Volvo to set up production unit in India. During the past year, Volvo sold a total of 820 units in India, which they hope will increase to 1200 units in the current year, while they have set targets of 20,000 by the year 2020. New dealerships were planned for Ahmedabad (AutoBots), and Bangalore (Martial Motors Pvt. Ltd). The latter is now operational and co-owned by their existing dealer in Hyderabad (owned by Saket Talwar and Mr. Ritesh Reddy). The first showroom here from Volvo is situated on Race Course Road over an area of 7000 sq ft.
Volvo India now sells S60 and S80 sedans, and XC60 and XC90 SUVs here as CBU’s (completely built units) and these imports do attract higher taxes. The V40 Cross Country launch is awaited. At present, Volvo is considering local assembly and are keen to operate out of an existing plant. The new development is under discussion as the company decides on an ideal partner for the same. It could be possible the chosen partner is Volvo AB through it’s Indian subsidiary that manufactures buses at their Bangalore plant. Volvo AB in India has a JV with Eicher known as VECV (Volvo Eicher Commercial Vehicles).