Volvo Cars aims to double marketshare in India's premium segment by 2020
The Swedish premium carmaker Volvo Cars is aiming to double its marketshare in premium segment by 2020 from the current close to 5 percent share.
While the Indian premium market is still relatively small, it is forecast to grow rapidly in coming years. In 2016, Volvo sold over 1,400 cars in India, an increase of 24 per cent compared to 2015. Year-on-year sales growth in the first four months of 2017 amounted to more than 35 per cent.
To further grow its business in the fast-expanding premium car segment in the country, Volvo Cars will start vehicle assembly operations in India in 2017. The assembly operations will be located near Bengaluru and focus on models based on Volvo’s SPA modular vehicle architecture. The first Volvo model to be assembled there is the XC90 premium SUV. Additional models slated for local assembly will be announced at a later stage.
In establishing its assembly operations, Volvo Cars is working together with Volvo Group, the truck, bus and construction equipment manufacturer, and will make use of Volvo Group’s existing infrastructure and production licenses near Bengaluru.
“I am pleased that as of this year we will be able to start selling Volvos that are Made in India. Starting vehicle assembly in India is an important step for Volvo Cars as we aim to grow our sales in this fast-growing market and double our market share in the premium segment in coming years,” said Hakan Samuelsson, president and chief executive of Volvo Cars, in a press statement last week.
“Volvo’s decision to start assembly in India and market its vehicles as ‘Made in India’ fits well with a similarly named initiative launched by the national government several years ago, which seeks to highlight and promote Indian manufacturing prowess,” added the company press release.