The Indian unit of Swedish carmaker Volvo will assemble all its vehicles in India starting upcoming 12 months, in line with the government’s ‘Make-in-India’ initiative to develop its presence in the luxury auto market in the region.
“Our sales this 12 months will be reduce than 2019. But we hope to keep on to achieve market share,” Volvo Motor vehicle India controlling director Charles Frump explained to ET. “Next 12 months onwards we will assemble all our products domestically, be in a excellent placement.” Frump stated the shift to domestically assemble all vehicles it sells in the region will entail supplemental expense but he did not share the specifics.
At present, Volvo Motor vehicle India assembles 3 products – SUVs XC60 and XC90, and sedan S90 – domestically at its facility in close proximity to Bengaluru, Karnataka.
Frump stated the enterprise has witnessed a continual revival in sales article the Covid-induced lockdown and expects need to return to normal through the festive period later on this 12 months.
“In Could, we were working at 25% ability, which greater to 50% in June. We were brief only by seven models in July. Customer need too has improved. The momentum in August is excellent, we are seeking to weigh how considerably of this is pent-up need vs . genuine need,” Frump stated. While Volvo is struggling with some brief-time period troubles subsequent the Covid pandemic, there is no transform in the company’s extended-time period strategy to acquire the market in India.
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