May 26, 2017

Geely's Volvo Cars to start assembly operations in India this year

19 May 2017, 07:50 | Winifred Adams

Swedish carmaker Volvo said on Thursday it will start assembling cars in India this year in a move into a fast-expanding market where it has had only a small presence until now.

The Indian luxury auto market stood at around 34,000 units, down over 5 per cent from about 36,000 in 2015.

"It's a sign of the company's strong commitment in India". In establishing its assembly operations, Volvo Cars is working together with Volvo Group, the truck, bus and construction equipment manufacturer, and will make use of Volvo Group's existing infrastructure and production licenses.

Swedish luxury carmaker Volvo Cars on Thursday said the company would rollout its first India-assembled vehicle by the end of the year. The company is targeting to introduce the first locally built model in the Indian market by the end of this year. While the company is starting with local assembly right now, further localisation will depend on how quickly it adds on the local sales numbers. The first Volvo model to be assembled there is the XC90 premium SUV.

Baker urges USA to stay committed to Paris climate pact
We are all in, and our joint commitment to this Agreement today is as in Paris: "irreversible and non-negotiable", he added. As he may have known, but probably did not, this process, under the terms of the pact, would take three years.

Following advice, potential FBI chiefs steer clear of job under Trump
Meanwhile, President Donald Trump is facing growing questions about whether he secretly recorded his conversations with Comey. Texas Southern University has canceled a commencement speech by Senator John Cornyn, a high-ranking Republican in the U.S.

After boy is taken by car thieves, police find body
Early Thursday morning, Kingston Frazier's mom went into a Kroger in Jackson and left Kingston in the still-running vehicle . Authorities are searching for a 2014 Honda Civic Coupe with license plate MDV 361 with a dent on the rear passenger side.

Volvo's announcement came as General Motors said it will stop selling cars in India, where it has less than a 1 percent share of passenger auto sales.

Though the Indian luxury market is small, it is forecast to grow rapidly in coming years to garner 10 per cent premium segment market share by 2020 from 5 per cent now.

Also, this is the second facility for Volvo Cars globally, after one in Malaysia, where knocked down vehicles are assembled. "Volvo Cars in India had a 32% growth in sales volumes in the past two years and the 2017 trend is as per our plan to achieve 2000 cars, this will give us a growth of 25% y-o-y", Bonsdorff added. "It's an arms length partnership in the Bengaluru plant", said Samuelsson.

GM's exports from India, mainly to Mexico and Latin America, almost doubled to 70,969 vehicles in the fiscal year than ended on March 31. "This is a good way to reduce our risk level in the country, as we are in line with Make in India", von Bonsdorff said. The contract manufacturing keeps investments in the assembly operations low and allows the company to be more aggressive in terms of margins and profitability in the Indian market.

Other News

Trending Now

Paul George's Likely Accidental Tweet Adds Fuel To The NBA Offseason Fire
Of course, he could bet on himself, exercise that option and choose to push free agency until next summer. He can become a free agent in 2018 by declining his 2018-19 player option worth $20.7 million.

Trump Denies Asking Comey To Close Investigation on Flynn
Attorneys: Patrick Cotter , who served the Eastern District of NY ; and Renato Marrioti , who served the Northern District of IL . A former federal law enforcement official told NBC that Comey wrote a memo about almost every interaction with the president.

Utah's Chaffetz expected to leave office by end of June
His campaign registered the web domains and in early April. Chaffetz previously has not ruled out another run for public office at some point in the future.

New Zealand optimistic of reviving TPP trade deal
Trade officials will be asked to work on an implementation plan at a Trade Ministers' meeting in Vietnam next week, which Trade Minister Todd McClay will co-chair.