Tuesday, July 24, 2012
By Manoj Kumawat
Volvo to setup production unit at Sanand
India has become a commercial hub; many multinational car companies have either entered or are planning to enter the Indian car market. This inclination of the MNC’s towards Indian market is also because the resources and manpower both are easily available. Car manufacturing companies are the ones that have really showed great interest in Indian markets and are ready to set up their manufacturing units in India, as it is the one of the fastest growing car market after china. The latest to enter the Indian markets is Volvo Auto India, a Swedish carmaker company. Currently it has Volvo S60 sedan, Volvo S80 sedan, Volvo XC60, Volvo XC90 SUV as part of the portfolio.
The company intends to establish its manufacturing unit at Sanand near Ahmedabad. Volvo is not new as it entered India way back in the year 2007, but as of now it is importing cars as completely-built units, establishing a unit in the country will be extremely useful as the cost will be lesser. The location, Gujarat is also apt for establishing the unit as the place has lot of potential and has developed rapidly in last few years. India’s strong economic growth rate has prompted multinational automobile manufacturers to further expand their domestic operations.
India centric investment has also become the focus of many multinational automobile manufacturers. Indian government entered into an agreement with Suzuki to manufacture small cars for the Indian markets since then the market of cars in India has been expanding. The well- built engineering base has made the expansion easier for many car manufacturing companies. With such a bright future in Indian markets, it is not a wonder that leading companies like Volkswagen, Ford, etc are looking forward to the Indian market in a big way. Research and development in India is another factor that has made way for the car companies. Today, Indian auto component companies are doing computer aided design and computer aided manufacturing, constantly coming up with new designs that reduce cost and increase efficiency. All these factors have made India a global player.