It is reported that Swedish car maker Volvo may be looking at setting up a car manufacturing facility in India. This is in alignment of companies focus on doubling its global sales by 2020. The company is also looking at other emerging economies to set up its manufacturing facilities.
As per Volvo Auto India Managing Director Tomas Ernberg- "It makes sense to set up a car manufacturing facility in India as we target sales of 20,000 units by 2020 here. A group within Volvo is conducting feasibility report of setting up a facility in emerging economies including India”.
Presently the company is operating on completely built up model, where in the cars are imported, and have to face a high duty structure.
Related Update from Volvo India:
Earlier in November 2012, the group had communicated that it plans to invest Rs. 2000 Crore in India to expand its truck, bus and construction equipment business. As per the President and Chief Executive Officer Olof Persson – “We are talking about 20 billion (rupees) going forward in the next coming years,". The investment would be directed at manufacturing, research and development and facilities.
VE Commercial Vehicles Ltd (VECV), a joint venture between the Volvo Group and Eicher Motors Ltd (EML), also has been looking at an investment of Rs 1,800 crore over next couple of years. This investment would be directed at modernization of the product range and setting up of new facilities for engine and bus body plants, paint shop and new test facility. Presently Volvo Group in India comprises – Volvo Auto India Pvt. Ltd., Volvo India Private Limited (VIPL) and Volvo Buses India (VBI) and VE Commercial Vehicles Ltd.