The Make In India wave is appealing to several automobile manufacturers that wish to prosper in the nation. Every manufacturer and company is trying to exploit this avenue for their profit.
Volvo plans to sell high volumes of vehicles in India in the coming years. They also want to introduce their entire range of products. Currently their products are brought to India via Completely Built Unit (CBU) route.
The Swiss manufacturer is contemplating of setting up their facility in India. Volvo will assemble their vehicles here and will benefit from lower taxation on their products.
Swedish manufacturer recently launched its V40 Cross Country petrol variant in India. They are most likely to follow it with the introduction of its new XC90 luxury SUV for India.
Volvo India will analyse the advantage and disadvantage of setting up an assembly facility. They are expected to make a decision by 2015-end whether or not to assemble vehicles in India.
They earlier had contacted Hindustan Motors, General Motors and Mahindra. Volvo was contemplating using one of the existing facilities to assemble their vehicles for the Indian market.
Volvo India realises they are missing out on achieving larger sales in India. They are most likely to assemble vehicles in India and it is just a matter of time before every manufacturer opts for this advantage.