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Volvo India plans local assembly for all models from 2021

Charles Frump, Managing Director, Volvo India, has stated that from 2021 onwards, the carmaker plans to assemble all its models locally.

Volvo's India portfolio includes five models - XC40, XC60, XC90, V90 Cross Country and S90. Out of these the XC60, XC90 and S90 are imported as completely knocked down (CKD) kits and assembled at Volvo's Hoskote plant near Bangalore.

The remaining models are imported as completely built units (CBU) and therefore attract higher import duties ranging from 60-100%. In comparison, CKD imports attract between 15-30% import duty, which significantly affects the final price of the vehicle.

Frump also stated that local assembly of Volvo's entire India portfolio would require additional investment in its factory. While this year's sales will be lower than 2019 due to the Covid-19 pandemic, the carmaker expects to increase its market share going forward.

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