Swedish luxury car maker, Volvo is planning to establish a manufacturing facility for its luxury cars in India. As the demand for its passenger cars increase, it will construct an assembly plant in India within the next 18 months.
Due to the fact that Volvo cars are imported from Sweden, they attract an additional 112% import duty but once the production of Volvo cars start in the India, the cost may go down by around 30 percent.
Volvo also launched an initial dealership in Gujarat by Euro Motors. Volvo sells its sedan S80 and SUV XC90 in India.
Euro Motors expects to sell 25 cars in Gujarat by 2009 and will provide on-air and door step services for any breakdown within 24 to 48 hours.