Volvo India looks to assemble all its models locally from next year
<p style="text-align: center;"><img title="1597731439337627.png" alt="6.png" src="/ueditor/php/upload/image/20200818/1597731439337627.png"/></p><p>The Indian unit of Swedish carmaker Volvo will assemble all its vehicles in India starting next year, in line with the government¡¯s ¡®Make-in-India¡¯ initiative to expand its presence in the luxury car market in the country.<br/><br/>¡°Our sales this year will be lower than 2019. But we expect to continue to gain market share,¡± Volvo Car India managing director Charles Frump told ET. ¡°Next year onwards we will assemble all our models locally, be in a good position.¡± Frump said the move to locally assemble all vehicles it sells in the country will entail additional investment but he did not share the specifics.<br/><br/>At present, Volvo Car India assembles three models ¨C SUVs XC60 and XC90, and sedan S90 ¨C locally at its facility near Bengaluru, Karnataka.</p><p><br/></p><p>Frump said the company has witnessed a steady revival in sales post the Covid-induced lockdown and expects demand to return to normal during the festive period later this year.<br/><br/>¡°In May, we were operating at 25% capacity, which increased to 50% in June. We were short only by seven units in July. Customer demand too has improved. The momentum in August is good, we are trying to weigh how much of this is pent-up demand versus actual demand,¡± Frump said. While Volvo is facing some short-term challenges following the Covid pandemic, there is no change in the company¡¯s long-term strategy to develop the market in India.<br/></p>
18 Aug,2020
