Volvo might set up an assembly plant in India

Volvo India is planning to go aggressive with its plans for India. The Swedish car manufacturer might set up an assembly plant in the country and the details of these plans could be revealed in the next few weeks. 

The company currently sells eight cars in India as completely-build-up (CBU) units. These units attract hefty duties which makes the car expensive. Assembling the cars in India would reduce this taxation, which will directly bring down the pricing. This would likely result in an increase in sales of the Volvo cars, which, in turn, will help the company capture some of the market share from the Germans. 

According to a report on moneycontrol, the Swedish car manufacturer has been in talks to set up a plant since 2012, but due to low volumes in the luxury car segment, these plans were postponed. However, it looks like the parent company is now convinced about the growth in India and wants to play a bigger role. Last year, Volvo grew by 11 per cent with 1584 units which is pretty good considering the fact that the segment leader, Mercedes-Benz saw two per cent dip in the overall sales. 

If Volvo manages to assemble some of their cars in India, the company will surely see a rise in sales. Volvo cars in India have a strong brand value and its cars are perceived to be more exclusive than those of the three Germans.