Volvo India likely to follow Ford, GM, TATA and Maruti: To set up plant in Gujarat
Sanand in Gujarat is fast becoming an auto hub. The latest company to join the band wagon is Swedish luxury car makers Volvo Auto, who are most likely to set up a plant in the locality. If Government sources in the state of Gujarat are to be believed, Volvo Auto India with backing from China’s Geely Automobile is on the lookout for land to set up their plant. Company officials are expected to meet Chief Minister of Gujarat, Narendra Modi in this regard.
The plant which is under speculation will be a semi knocked down plant and so far the company has identified two such prospective locations. One is in Sanand and the other in Chennai but considering infrastructure and already booming auto industry in the state of Gujarat, in all likelihood, Sanand will be chosen over Chennai.
Volvo entered the country in 2007. Their current lineup is brought in as completely built units. With the new set up slated for Sanand, Volvo will compete with likes of Mercedes Benz, Audi and BMW but will have to keep prices on par to stand in the competition.
Volvo on their part is confident of their success in the Indian auto sector. They have set targets at 15% share in the luxury car segment in India by 2020. Though company officials are mum regarding location of the new plant, they have stated that final decisions will be taken by their team in the US. Last year the company sold 320 units in India and is aiming to sell 800 units during the current year. India is a very important market for the company who are aiming to become major players in the Indian market as they target to be in top three positions in the not too distant future.
“We are looking aggressively at the Indian luxury car market and aim at having a 15% share in the segment by 2020. The decision to identify a location is taken by our team in the US who are looking at the various options. Nothing has been finalized yet,” said Tomas Ernberg, managing director, Volvo Auto India.