The 2013 Union Budget has affected many automobile manufacturers bringing their products through CBU (Completely Built Unit) route in India, one of the most affected brands in this case is the Swedish carmaker, Volvo. The automaker has a good position in the premium bus segment in India but lacks far behind its German rivals in terms of luxury car portfolio in India. The Swedish automaker is now considering focusing more on its luxury car portfolio in the country and is considering the setup of a local assembly plant in India.
In order to increase the company’s share in the Indian market, the automaker will now start rolling out their products through CKD (Completely Knocked Down) route in India in the coming future. The investment plans for local assembly plant is not finalized so far. Volvo is looking forward to expand its presence in India and has planned to revamp its product offerings in the country along with authentic brand experience for customers. They will be realigning their dealership network in India as well as introducing new cars with smaller yet fuel efficient engines.
The new product offerings will also include the entry-level crossover, the Volvo V40 Cross Country, which will come through the CBU route initially. The V40 Cross Country will compete with the likes of the BMW X1 and Audi Q3 and is expected to be launched within a few months, while the deliveries are likely to commence from June this year. Currently, the Chinese owned company has seven showrooms in India and the manufacturer is planning to add three more showrooms in Delhi, Bangalore and Gurgaon this year.
Volvo sold just 821 cars in India last year and is now hoping to boost volumes tremendously in the coming years. The company aims at selling 20,000 units in India in the next 5 years, a task which is not very difficult if Volvo go for local assembly, thereby pricing their products more aggressively. Volvo is currently revamping its complete product range globally, which will simultaneously be launched in India, as it looks to threaten the German trio for market share.