Volvo Is Looking To Produce Cars Locally
After entering the Indian market a few years back, Volvo has been importing its cars and has been selling them as Completely Built-up Units (CBU). This attracted higher taxes and their cars were more expensive than their rivals. This allowed BMW, Audi and Mercedes-Benz to take a major chunk of the market. With BMW now increasing localization to 50% and Jaguar and Land Rover sales slowly picking up, it is time Volvo considers manufacturing the cars locally and take a larger chunk of the market share.
Volvo currently has the V40 Cross Country, S60, S80, XC60 and the XC90 on sale in India. All these cars are fully imported. They will launch the V40 hatchback and the new XC90 soon. This will be accompanied by a new S60 T6 sedan. The company claims that the new XC90 is a big step ahead of its predecessor and is now a proper rival for the german cars.Volvo hopes to acquire 10% market share in the Indian subcontinent.
Reports suggest that the company has approached various manufacturers like Mahindra, General Motors and Hindustan Motors to use their existing production lines to assemble Volvo cars. Hindustan Motors has ruled out any possibilities of any such tie ups. Localization should help the company lower the cost of their products and achieve its targets.
Volvo hopes that the new products and the localization strategy will help turn their fortunes around.
Source – MotorBeam