Volvo plans car manufacturing in India

Swedish heavy commercial vehicle maker, Volvo Group, is planning to set up a manufacturing unit for cars in India. As demand for its imported passenger cars increases, it will set up an assembly unit in the country within the next 18 months. “As of now, Volvo’s passenger cars are imported from Sweden. This attracts an import duty of 112% making them pricey. On the other hand, the demand for Volvo cars in India is increasing so the company is planning to set up its manufacturing unit in India,” said Managing Director of Euro Cars, Kirit Patel. Euro Cars is the first dealer of Volvo cars in Gujarat. Once the production of Volvo cars begin in India, the price may go down by 30%. “The cars, which cost around Rs40 lakh (US$86,011) and above now, would cost a few thousands less,” said Marketing Director of Euro Cars Darshan Gajjar. (September 6, 2008)