Previously, Volvo Cars had announced that it would start assembly operations in India in 2017. The automaker has begun assembling the XC90 at Volvo Trucks' plant in Bangalore.
Currently, Volvo will assemble only the diesel variants of the XC90 in India, whereas the T8 plug-in hybrid model will be imported to the country. The automaker is working with Volvo Group India - the truck, bus, construction equipment and Penta engines manufacturer for its assembly operations.
Apart from the XC90, Volvo is also planning to assemble other models based on the company's SPA platform such as the S90 sedan and yet to be launched new XC60. Volvo is using the existing infrastructure and licenses to assemble cars in India.
Volvo's decision to locally assemble its models is in line with the ‘Make In India' initiative and will benefit the customers. Currently, Volvo has a segment share of 5 percent in the country and aims to have 10 percent share by 2020.
Managing Director of Volvo Auto India, Charles Frump said, "It's a moment of great pride for all of us at Volvo Cars. The roll-out of first locally assembled Volvo Car speaks volumes for the company's commitment to grow further in India."
He added, "The last three years have been good for us in India and we noticed a positive and encouraging growth in terms of increased segment share, world-class product and new dealer appointments."
Volvo has finally commenced the assembly operations in India, but the automaker has not confirmed about any reduction in the price of the locally assembled XC90. On the other hand, the local operations will help Volvo to cement its position in the Indian market.