Volvo Cars in India might become cheaper

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Volvo Auto India is contemplating setting up an assembly plant for its Indian line up of cars. Volvo cars are currently imported to India via CBU route and an Indian assembly will spell into considerable savings in the manufacturing and hence, would ensure a good profit margin for the car maker. It may be noted that in India, Volvo has priced its car lower than the German rivals to compensate for the lack of brand image in the luxury segment.

A local assembly will not just result into more profits for the car maker but will also allow Volvo India to reduce the selling price of its cars.

Mr. Thomas Ernburg, MD, Volvo Auto India recently said, “It makes sense to set up a car manufacturing facility in India as we target sales of 20,000 units by 2020 here. A group within Volvo is conducting feasibility report of setting up a facility in emerging economies including India.”

Volvo Auto India is also planning to bring the V40 Cross Country to India next year. Mr. Ernburg further said, “We shall be launching our new model V40 Cross Country in India by March end or April, for which the price has not been finalized yet”


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