Volvo plans an assembly plant in India, car price hike from tomorrow
Volvo has already made plans to make its new year very busy and much more established than before. The company is thinking over to set-up an assembly plant in India. Right now, Volvo is in the process of doing its homework right by conducting a viability study for the same. This Swedish auto major aims to hike up its sales in India to 20000 units by the year 2020. Also, it hopes to double its international sales figure from 440,000 to 800,000 units by the aforesaid period 2020.
Besides the plan of setting up an assembly unit in India, the company also mentioned that it will raise the prices of its car models to up to 5% that will come in effect from 1st January 2013. However, this announcement isn’t official so far, but will be made legitimate very soon! Volvo has the same reason to increase the prices of its car as given by other car companies- hike in import costs and depreciating rupee value.
Besides the price rise and assembly plant plans, Volvo India is also mulling to have about 13 dealerships in India by next year. It has opened up its 11th one in Ahmadabad recently. With this new dealership, the company is aiming to sell about 150 Volvo cars
there in next year.
Currently, Volvo India brings in its car models to India through CBU route. And because of that Volvo cars have a heavy price tag and fail to survive with profit in the luxury segment in front of its rivals. This CBU route is costing some hurting figures on the profits of Volvo India. Therefore, establishing an assembly plant in India would surely bring down the cost of Volvo cars here and thereby make it more viable for the consumers as compared to the current situation.