Volvo Cars plans to take a decision regarding starting vehicle assembly operations in India by the end of the year. "An industrial team based out of Sweden looks out for opportunities across the world. It is also looking at the possibility of having local assembly in India," said Press Trust of India (PTI) in a report citing an unnamed industry source. The automaker's Indian line-up includes the S80 and S60 sedans, the XC60 and XC90 sport utility vehicles (SUVs), and the V40 Cross Country.
Significance: Having entered the market in 2007, the Swedish luxury brand has remained a fringe player in India's small but growing luxury vehicle market. The automaker imports all the vehicles sold locally, attracting high import duties and making its vehicles uncompetitive compared to its German rivals. On the other hand, BMW, Audi and Mercedes-Benz have recently expanded their local assembly operations. Reports that the Swedish automotive brand, now owned by China's Geely, is tying up with local players for contract assembly surfaced early this year but nothing concrete has come up so far. Local assembly and introduction of new models will be important for the automotive brand's target of selling 10,000 units in India by 2020.
