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Volvo Cars to start local assembly in India

Volvo Cars India has officially confirmed plans to start local assembly of its cars in India. The XC90 flagship SUV will be the first product to be assembled locally, while other models in the Swedish automaker's portfolio will also take the CKD route in the future. The company is targeting to introduce the first locally built model in the Indian market by the end of this year.

For the said local assembly operations, Volvo Cars India will be using the existing infrastructure of the Volvo Group in the country. Volvo already manufactures trucks and buses at a plant in Hoskote, near Bangalore. The XC90 too will be assembled at this facility for the time being. Eventually, Volvo wants to start local assembly of all models based on the SPA (Scalable Product Architecture) platform.

With the commencement of local assembly, Volvo will no longer need to pay heavy taxes on its CBU imports. This will help the automaker to price the products more competitively, which might in turn provide a boost to the company's sales figures. Volvo currently has a market share of 5% in the premium vehicle segment, which the automaker is aiming to double by 2020.

 
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