Rumour: 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.

Volvo cars are brought to India as Completely Built Units, thus attract maximum duties and taxes. Local assembly will result in more competitive prices in the Indian market, thus their cars will be in a better position to take on the 3 German brands. The line up of cars includes the V40 Cross Country hatchback, S60 sedan, XC60 SUV, S80 sedan and XC90 SUV. The company recently launched a petrol powered V40 Cross Country in the country and is gearing up to bring in its flagship SUV - 2015 XC90 to India soon.

The company aspires to increase its sales volume by 70% during the current year. It is widening its dealership network too, which is targeted to reach 22 from 15 (at present) by the end of 2015.