Volvo To Make In India: What Difference Does It Make?

Volvo's renaissance in the Indian auto space started exactly two years ago when the new-gen XC90 debuted in India. In order to make the brand click, the Swede's stuck to the oldest trick in the book - common sense. Despite being a CBU, the flagship Volvo SUV wasn't obscenely priced. This ensured that it, a - got a spot on the buyers' consideration list, and b - found homes in India.

The luxury car space is slowly booming, and for a relatively new manufacturer like Volvo to gain a 5 per cent share of the market is praiseworthy. What's more, the manufacturer aims at doubling that figure within the next three years. The only way that's going to happen is if Volvo plays the volume game. And, to enable that the Swedes need to produce locally.

Well, good news. They're doing just that. Volvo's passenger vehicle division is working in tandem with their commercial vehicle wing, and utilising the manufacturing facility located near Bangalore. Volvo will locally assemble cars based on their modular SPA platform. The XC90 will be the first model to be made in India. The made in India Volvo will roll out in the last quarter of 2017.

Other cars based which are likely to be locally assembled include the S90 sedan and the upcoming new-gen XC60 SUV. The V90 Cross Country that's slated for an India debut later this year could be on the menu as well. Other vehicles, such as the V40, V40 Cross Country and the S60 will continue to be imported.

Recommended Read: Review: Volvo S90

In our view, local production is a step in the right direction. Volvo has grown by 32 per cent in the last two years, and this move should only strengthen its position in the luxury space. The next logical step should be increasing presence pan-India with more sales and service outlets. We're sure that's on the agenda already.

Recommended Read: Volvo XC90 Review