We were told at the S60 Polestar launch that local assembly will start soon and now the official confirmation has come in that indeed Volvo cars will start vehicle assembly operations in India in 2017. The assembly operations will be located near Bengaluru in southern India and focus on models based on Volvos SPA modular vehicle architecture. The first Volvo model to be assembled there is the XC90 premium SUV. Additional models slated for local assembly will be announced at a later stage.
In establishing its assembly operations, Volvo Cars is working together with Volvo Group India - the truck, bus, construction equipment and Penta engines manufacturer, and will make use of Volvo Group India———s existing infrastructure and production licenses near Bengaluru. In terms of sales, there has been a 32% growth for Volvo cars for the past two years.