Volvo Starts Assembling Cars in India

Swedish  brand Volvo has begun assembling cars at their plant near Bangalore in India. Cars valued $40,000 or more that are brought into the country through the Completely Built Unit route attract an import duty of 100%. So to make the cars more affordable to Indian consumers, Volvo India will go the Completely Knocked Down route paying a 10% import duty on car components.

Volvo’s facility in India has its Scalable Product Architecture (SPA) modular chassis technology on which the company assembled its first XC90 SUV for India. SPA allows a wide range of cars, powertrains, electrical systems and technologies – all of differing complexity – to be fitted on the same architecture, generating significant economies of scale.

Volvo XC90 - Air suspension quotes Volvo Auto India’s managing director Charles Frump as saying, “It’s a moment of great pride for all of us at Volvo Cars. The roll-out of the first locally assembled Volvo car speaks volumes for the company’s commitment to grow further in India. The last three years have been good for us in India.”






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Posted on by Gunjan Bagla
Gunjan Bagla
California-based management consultant Gunjan Bagla runs Amritt, a consulting firm helping American companies to succeed in India. Amritt is the trusted advisor for India market research, India business development, India market entry, Global Engineering, Global Technology Scouting, India R&D and Open Innovation. Gunjan is author of "Business in 21st Century India: How to Profit Today from Tomorrow’s Most Exciting Market" (Hachette Book Group, 2008), Amazon's top rated title on the subject. He has appeared as the India Expert on BBC Television, Bloomberg TV, Fox Cable Business and has been quoted in the New York Times, the Los Angeles Times, the Hollywood Reporter and Business Week for his expertise on India.


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