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Old 25th March 2013, 11:49   #16
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Default Re: Volvo Cars considering local assembly in India

The assembly will be in Narsapur, Bangalore. This is closer to the new Honda 2 wheeler plant.
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Old 25th March 2013, 18:25   #17
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Default Re: Volvo Cars considering local assembly in India

A Volvo can never be as aspirational as a Merc, BMW or an Audi because the big 3 are considered as luxury cars, portrayed that way and that image embedded into our minds creating an aura of superior engineering in our minds.

But is the Volvo low on tech? No...Volvo is known in Europe and US for its revolutionary safety features, conservative styling, easy to maintain family car image. It doesn't compete with the big 3 there either. In fact several of my relatives in the US and UK says that Volvo is a rather good car with amazing tech.

With the long list of features mentioned in Volvo ads in India it definitely has lots of tech!!

With local assembly there would be a huge price cut.Volvo would definitely find lots of buyers if it was priced in the 15-25 lakhs bracket and take the fight to Skoda,Volkswagen, Toyota and Honda.

Will the Geely ownership play on the mind and deter buyers..that might be a question?
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Old 25th March 2013, 20:47   #18
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Default Re: Volvo Cars considering local assembly in India

I've always thought of Volvo as a quality conscious but slightly ill-positioned brand. To me, they've never really had the brand clout to challenge the holy trio (BMW, Audi, Merc). Possibly because they have always positioned their cars as safe, family cars. Yes, they are pretty much a luxury car makes, but somehow the message has never been clear.

If they somehow re position themselves as a slightly costlier than VW/Peugeot type brands (the costliest among the common brands) but with a considerably higher is QQ (quality quotient)(which they currently have too), they will find a lot of takers. Yet, they need to be substantially cheaper than the German trio. I'd pick a Volvo over a VW any day. But a Volvo over BMW. Naahh! Primarily coz you can't show off with a Volvo, whereas you can with a BMW. And in India, in the luxury segment, show off capability is a must have!

Interesting facts:

1. Audi had also lost some brand sheen over the years. Also, it had never been Merc premium. Audi slowly worked its way up in the laler part of nineties and early 2000s. Look at it compete shoulder to shoulder with the other two now.

2. Some brands Jaguar etc. compete very successfully with the Germans. So, its not only the German thing that works. What helps though is the fact the Jag has always been a luxury car maker (and also perceived as one).

3. Some companies have consistently tried to become more premium from time to time (read VW) with a slew of products (Toureg, Phaeton etc.) and have majorly failed. Interestingly, some other of its products have become 'premium' by virtue of its popularity and niche nature (read Golf and Beetle).

4. Lexus, although still mostly US specific, seems to be doing rather well against the Germans.

5. Some other Euro luxury cars brands such as Alfa Romeo (Fiat owned), Lincoln (Ford owned), and Cadillac (GM owned) also seem to be doing rather poorly. They all suffer from confused styling and brand positioning.

Last edited by Abhi_Automobile : 25th March 2013 at 20:54.
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Old 24th October 2013, 09:16   #19
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Default Re: Volvo Cars considering local assembly in India

After the recent launches of S60 and XC60 facelifts, I have been wondering. For how long has Volvo been in India? I am guessing, close to 10 years.

BMW and Audi had started assembling their cars in India within a few years of starting their operations here (ok, we can give it to Audi that Skoda was already here). So what is stopping Volvo from doing so?

I believe any car manufacturer has 3 major tasks once they decide to start their operations in a country:
1. design new cars or homologate existing models to suit the local requirements
2. build and expand dealership network
3. set up a factory for building/assembling the models with most demand (or with most profit margins)

Looking at Volvo, they haven't really concentrated on any of these tasks. Looking at other manufacturers, it seems like each task takes about 3-4 years to achieve.

Is the new owner of Volvo not interested in expanding the brand in India? Or, does the new owner too does not have enough money to pump into Volvo to expand its operations across the globe?
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Old 24th October 2013, 10:05   #20
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Default Re: Volvo Cars considering local assembly in India

The issue was when volvo came into India, it was part of Ford who wanted to sell Volvo off hence no investment in local assembly. Geely took over but there has been the normal - forming, storming, norming - performing cycle that would happen in any take over. Hopefully, things will kick in now.
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Old 25th April 2014, 14:36   #21
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Default Re: Volvo Cars considering local assembly in India

Volvo has confirmed that it will assemble cars at an upcoming facility in Karnataka, targets ten-fold sales increase by 2018.
Quote:
Quote:
At present, Volvo imports all cars into India as completely built units or CBUs that attract maximum duties. Lower pricing should help Volvo gain more ground in the luxury segment that is increasingly becoming a hotbed for intense price wars
Quote:
The year 2014 will see the introduction of the XC60 and S60 with engines from Volvo’s new Drive-E family of 2.0-litre petrol and diesel motors. This will be followed by the introduction of the all-new XC90 that will be revealed at the Paris motor show this October. The ageing S80 sedan will also be replaced in late 2015 by the new S90.
Further down the road, the new XC60 and S60 will complete the revitalisation of the Volvo range. Interestingly, all the cars headed to India will be made on Volvo’s SPA or Scalable Product Architecture and will use the same set of 2.0-litre engines.
http://www.autocarindia.com/auto-new...20-383767.aspx

Last edited by volkman10 : 25th April 2014 at 15:01.
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Old 27th April 2014, 07:45   #22
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Default Re: Volvo Cars considering local assembly in India

Quote:
Originally Posted by volkman10 View Post
Volvo has confirmed that it will assemble cars at an upcoming facility in Karnataka, targets ten-fold sales increase by 2018.


http://www.autocarindia.com/auto-new...20-383767.aspx
Any idea when they expect the factory to be operational? If they are targeting 10-fold increase in sales by 2018, the factory should be operational by at least 2016 or so.

It is bad news for any potential Volvo buyer in the next couple of years till Volvo factory is operational. The price of the car coming down drastically is never going to help those who buy at the CBU price when they try to sell their cars.
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Old 4th May 2015, 15:42   #23
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Default Volvo might assemble its cars in India

Since the time of its entry in India, news reports suggested that Volvo have been considering local assembly of their passenger cars in India. An article by NDTV suggests that the Swedish luxury carmaker will finally take a decision regarding the local assembly in India by the end of this year.

Link to news article
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Old 30th June 2015, 20:17   #24
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Default Volvo Service: Customer protests with billboard

I came across this on facebook today:

Volvo Cars considering local assembly in India-10631059_10152856334200764_874034126203393614_o.jpg

Here is the link to the page and the accompanying comments:
https://www.facebook.com/photo.php?f...type=1&fref=nf

Anyone have any idea about this?
Anyone has had a bad service experience with Volvo?
Is this just a Delhi issue or are other service centres also not up to scratch?


Disclaimer: I have no relation to the person or the issue. Just sharing something I came across.

Last edited by jalsa777 : 30th June 2015 at 20:18.
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Old 16th September 2016, 15:19   #25
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Default Re: Volvo Cars considering local assembly in India

Volvo expresses intention to set up unit in Bengal.

A day after West Bengal Chief Minister Mamata Banerjee invited the Tatas to set up a car factory in the state, Swedish automobile giant Volvo has expressed intention to establish a unit.

Quote:
I spoke with Volvo (representatives) today. We will give them 25 acres in Panagarh industrial park
Quote:
They will have a setup there. We have given them land
Link

Last edited by volkman10 : 16th September 2016 at 15:22.
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Old 16th September 2016, 15:47   #26
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Default Re: Volvo Cars considering local assembly in India

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Originally Posted by volkman10 View Post
How are they able to set up assembly unit in 25 acre of land?!

Will Volvo be purchasing land on their own seperately adjoining to this 25 acre or this is for something entirely different? Like the software unit they have in Bangalore?
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Old 16th September 2016, 15:50   #27
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Default Re: Volvo Cars considering local assembly in India

This will be awesome!! Volvo has fantastic products. I personally love the S60 but the price and lack of after sales is the only deterrent. Production in India would mean lower pricing and giving most brands a run for their money.
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Old 16th September 2016, 15:51   #28
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Default Re: Volvo Cars considering local assembly in India

Quote:
Originally Posted by volkman10 View Post
Volvo expresses intention to set up unit in Bengal.

A day after West Bengal Chief Minister Mamata Banerjee invited the Tatas to set up a car factory in the state, Swedish automobile giant Volvo has expressed intention to establish a unit.




Link
Wow! You need to be a person of a very strong conviction to take such a decision. I hope Volvo has thought this through well enough.
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Old 16th March 2017, 13:38   #29
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Default Re: Volvo Cars considering local assembly in India

A recent Economic Times report mentions that Volvo is currently scouting for an Indian partner who can help the company to set up a CKD assembly plant. Volvo officials in India are also trying to gauge the magnitude of investment needed and the potential profitability from local assembly.

Link to Team-BHP News
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Old 16th March 2017, 15:54   #30
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Default Re: Volvo Cars considering local assembly in India

Quote:
Volvo is currently the only mainstream luxury car company in the country which is bringing all its models as CBUs (Completely Built-up Units). This is resulting in the Volvo range having a price disadvantage compared to its immediate competitors that are being assembled locally. Import duties applicable on Volvo cars imported in India is currently in the range of 100-180%. Since the Indian luxury car market is growing with every passing year, Volvo is now stressing on setting up a plant for the local assembly of its cars.
Kudos to Volvo for looking to start operations in India. It will be beneficial to our auto industry and the economy.

But to what what degree will the manufacturer pass on the tax benefits, from CBU to CKD, to the customer?

eg. The current C class was initially launched as a CBU at 40.9 lacs in late 2014. Few months later when MB began local assembly, the car was launched again as a CKD at exactly the same price.

With localization, we've seen a number of features missing , sometimes even a drop in overall perceived quality. See how under equipped the new E class is compared to the international variant.

I've always stood buy Volvos in India because they're fully loaded international products.


Let's wait and watch how this pans out for Indian customers.
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