Volvo will start local assembly of its cars in India, starting with the XC90

Volvo India will start local assembly of the XC90 at its Bangalore plant.

The Swedish brand will be able to competitively price the Volvo XC90 after it starts local assembly of the SUV in India. Currently brought in through the CBU or Completely Built Unit route, Volvo needs to pay a high figure in tax which increases the sticker price of the car for the customer.

Volvo XC90 hybrid India launch

For cars brought in via CBU having a value of more than $ 40,000, there is an import duty of 100%. If the vehicle is brought in via the CKD (Completely Knocked Down) route, the tax is only 10%! With the Volvo XC90 being brought in this way, there will be a good drop in prices which should translate to more sales for the company.

Volvo India already has a facility in Hoskote near Bangalore where they assemble trucks and buses. This plant can be used to assemble the XC90 and the production numbers can be accommodated without any issue at the plant. This will be a temporary arrangement though as Volvo aims to start local assembly of more models here. All models in the SPA (Scalable Product Architecture) platform are the target for local assembly by Volvo and this includes the Volvo S90 sedan as well. So there will be a dedicated production line for Volvo in India soon.

Volvo XC90 Front Three Quarter Left (2)

The brand Volvo has been well received in India, be it cars or trucks or buses. We get a sense of comfort and safety when associating with the brand. There is also a sporty side to Volvo as well which was shown through the S60 Polestar when launched in India. The XC90 also gets attention with its emphasis on safety and luxury. It will be followed soon by the smaller XC60.

Volvo currently has a market share of 5% in the premium vehicle segment and they aim to double it in three years’ time. Local assembly will be a good step in achieving that dream and then some more

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