2018-04-23
Volvo may assemble hybrid cars in India

Swedish luxury car maker Volvo Car is planning to assemble hybrid vehicles in India to stay ahead of German luxury car makers in the cleaner emission technology in India, especially in the future when such standards become stricter.

Volvo, which last year set up a factory in Bengaluru, expects most of its vehicles to be manufactured locally in two to three years, which may include a few hybrid variants as well.

Charles Frump, MD of Volvo Car India, told ET the company has set a vision of selling a million electrified vehicles by 2025 globally, and India will play a big role in achieving this target.

“There are various studies going on and we are trying to convince the government why hybrids are an important bridge towards complete electrification,” Frump said.

The company plans to have the majority of its fleet in India electrified by 2020, which is in line with its global transition.

In the mainstream market, Maruti and Toyota are already working on localising electric and hybrid cars and even Hyundai plans to assemble electric cars in India by 2019. Volvo, which has been quick to introduce global models in India within six months of their global launch, is also studying how its 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 its local production, and over the next year or so, it plans to add the XC60 and V90 to its production line across the country.

Led by the new XC60, Volvo Car India registered a growth of over 25% between January and March this year, which was over and above the 28% growth it registered in 2017, when the company sold little over 2000 units. With the new XC40 lined up for launch in the July to September quarter, Volvo is eyeing an over 50% growth in 2018.

Source- The Economic Times