Swedish car manufacturer Volvo has announced it plans to locally assemble two new models in India by the end of this year.
The models will be the XC60 and the V90 cross country. It is hoped this will strengthen Volvo’s business in India.
In October last year, the company had already started locally manufacturing the XC90 and S90 models at its facility in Bangalore.
Volvo says it hopes to expand its sales network in India, hoping to open one new dealership every month until the end of 2018. Most parts are still shipped on demand from Sweden, but the company hopes that by opening a new central parts warehouse in India, it will not have to wait for shipping in the future. Coupled with the expansion of the Bangalore factory, this will boost local production immensely.
Volvo Car India Managing Director Charles Frump said, according to The Hindu: “The biggest gap we have here is that we don’t have a small SUV and XC 40 fills that gap. Right now, we have 21 dealerships and we will get to 29 stores by the end of this year. So that will give us full coverage of India.”
Volvo India sold about 2000 units last year, enjoying year-on-year growth of 28%.