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Volvo to locally assemble hybrid vehicles in India

Thursday, April 19, 2018, 10:48
This news item was posted in Business category and has 0 Comments so far.

Stockholm: Swedish luxury car maker Volvo Car India is planning to locally assemble hybrid vehicles in a bid to get ahead of the German luxury car makers in the cleaner vehicles space in India. The vision is also part of the auto major’s plan for future when emission standards get stricter.Volvo, which last year set up a factory in India, expects a majority of its vehicles to be locally manufactured in the next two to three years. It is likely to include a few hybrid variants.Charles Frump, MD of Volvo Car India told ET, that the company itself has set a vision of selling a million electrified vehicles by 2025 and India will be a key contributor to that target.”It is a not a question of if, but when we will start assembling hybrid vehicles in India. There are various studies going on and we are trying to convince the government on why hybrids are an important bridge towards complete electrification,” Frump said.The company plans to have majority of its fleet in India electrified by 2020 in line with its global transition.To be sure, in the mainstream market, Maruti and Toyota are already working on localising electric and hybrid cars and even Hyundai has announced its plans of assembling electric car in India by 2019Volvo has been quick to bring in global models into India within six months of global launch, is also studying how the Indian arm can bring in the company’s first electric car which is slated for global launch in 2019.In the interim, the company is strategically adding more models to its local manufacturing footprint. Post the XC90, Volvo has already added the S90 to the local production and over the next year or so, it has plans to add the XC60 and V 90 cross country to its production line.Led by the new XC60 Volvo Car India registered a growth of over 25% in January to March of 2018 and this was over 28% growth it registered in 2017, when the company sold little over 2000 units.With the new XC40 lined up for launch in July to September quarter, Volvo is eyeing over 50% growth in 2018.The company closed with a market share of 5% at the end of 2018 and Frump is confident with the new generation cars on SUVs on the new architecture, Volvo is likely to double its market share to 10% in the coming three years.Apart from expansion of portfolio, with newer generation of cars, the company will be almost doubling dealership footprint to over 40 in 2-3 years.

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