Swedish luxury automobile manufacturer Volvo has announced its plans to conduct feasibility study on setting up of manufacturing facilities in India among other emerging economies with the aim of nearly doubling its global sales from 4,40,000 units in the year 2012 to 8,00,000 by the year 2020.
The carmaker has also decided to increase prices across its car portfolio in India by at least 5 percent with effect from January 2013. The price hike has been attributed to the devaluation of the Indian rupee coupled with inflation and the rising input costs. Volvo which operates on a completely built unit model eyes a 15 percent share in the 1,50,000 units luxury car market in India by the year 2020.
The Swedish luxury automaker is planning to launch the new V-40 cross country around March –April 2013 and expects total sales of 1,200 units in the year 2013, 10 percent of which it expects from the Gujarat auto market in India.
Mr. Tomas Ernberg Managing Director Volvo Auto India stated that since the carmaker targets 20,000 unit sales in the Indian market by the year 2020, a manufacturing facility in India would make sense.