[TusharK]

Charles Frump, Managing Director of Volvo Auto India has revealed that the Swedish carmaker plans to expand its India operations by commencing local assembly of completely knocked down (CKD) units of three more models.



Currently, the XC90 is Volvo's only car that is being assembled at the company's production facility near Bangalore. The first locally assembled XC90 rolled out of the factory in October 2017. The company plans to start CKD assembly of models based on the Scalable Product Architecture (SPA) platform. These include the S90 sedan, V90 Cross Country and the new XC60.



At present, the S90, V90 Cross Country and XC60 are imported as completely built units (CBUs). Additionally, the company is evaluating the possibility of developing a local vendor base. These steps are expected to help Volvo to price its cars more competitively.



The S90 was launched in November 2016 at a price of Rs. 53.50 lakh (ex-showroom, Delhi) followed by the V90 Cross Country in July 2017. The estate car came with a price tag of Rs. 60 lakh (ex-showroom, India). In December 2017, Volvo introduced the new XC60 at a price of Rs. 55.90 lakh (ex-showroom, India). The company also plans to launch the XC40 compact SUV later this year.

Source: The Economic Times

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[agambhandari]

Although the prices of these cars(except the XC90) are very rational already, can we expect any price corrections in the near future? I feel this is a great move by Volvo so that they can move towards profitability in India.

[drmohitg]

Yea I feel this will enable them to draw more profits and it would not be passed on to the customer atleast to be of any significance. Unless ofcourse they want to focus on building the brand more and garnering numbers and end up pricing their cars lower than the competition.

[vb-saan]

They have already nailed the design aspect and quality, and infact have already priced their cars quite aggressively despite of being CBUs. Local assembly probably will enable them to play around the price factor even better.

[volkman10]

2021 Volvo S90 and V90 gets hybrid technology.

This is essentially a belt-driven motor generator that can recover power under braking and store it for later use, such as starting and assisting the engine. Volvo said the system could reduce fuel consumption by up to 15%.





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