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Volvo wants to lead EVs race in India
Volvo set up a facility near Bengaluru to assemble its vehicles locally in 2018 to compete more aggressively in the highly competitive 40,000-unit luxury car market. Having been on the fringes of the Indian luxury car market, Swedish luxury carmaker Volvo Car India wants to lead the way in the electrified vehicle portfolio in the country ahead of its German rivals. Volvo, which has already finalised plans to locally assemble plug-in hybrid vehicles, is now considering local assembly of electric vehicles in the country. The company is on course to launch the first plug-in hybrid vehicle assembled locally in India later this year and plans to have a portfolio of half- a-dozen plug-in hybrids and battery-operated electric vehicles in India by 2021.
The government’s decision last month to reduce customs duty on import of components for electric vehicles from a range of 15-30% to 10-15% has made a business case for Volvo to assemble electric vehicles in India, Charles Frump, MD of Volvo Car India, told ET.
“It was a big announcement from the government with the customs duty reduction for battery electric vehicle (components). Immediately after we heard about this customs reduction, I jumped on a phone to Sweden to start talking about what we can do for India,” Frump said on the sidelines of the inauguration of the company's 25th dealership here.
Volvo set up a facility near Bengaluru to assemble its vehicles locally in 2018 to compete more aggressively in the highly competitive 40,000-unit luxury car market. Local assembly has already helped Volvo, whose three locally assembled models account for half the sales.
When asked if Volvo is planning to set up an engine assembly in India to take advantage of lower tax structure, Frump said his immediate focus is to bring most of its models it sells in India through the CKD route.