Apart from making hybrids, Volvo plans on reaching out to rural markets in India in an attempt to expand.
Volvo is planning to introduce a Made in India battery operated plug-in hybrid version of the XC90 during the second half of 2019. According to a top company official, they are also looking forward to capture the rural markets in India to enhance their growth.
After the government declared the lowered import duties on parts and components of electric vehicles from 15 percent to 10 percent, the company planned to bring in the battery operated hybrid vehicles to the Indian market.
Volvo is going to be the first car manufacturer to locally assemble its plug-in hybrid car in India at their Bengaluru plant. The Volvo XC90 has been considered for the base of the hybrid vehicle. The manufacturer plans to bring the Hybrid vehicle in the second half of 2019. The company is already selling the XC90 hybrid as a CBU but now it will be locally made.
The company upon asking on the localisation of their cars said that their Bengaluru facility was operational since October 2017 and the first model to be locally assembled was the XC90. This was later followed by the XC60 in the last year. from a volume perspective, 60 percent of the company’s vehicles are rolled out from the Bengaluru facility. Volvo has decided to expand their line-up of cars that are being assembled in the plant.
Volvo plans on expanding its reach to the tier II and tier III markets and wants to reach to smaller cities. The company recently added dealers at Indore and Raipur. A new showroom was also opened in Calicut. Volvo also has a good reach in Vijaywada and Vishakapatnam. The company believes that they have a good opportunity in reaching the smaller markets. The bigger markets also provide a lot of opportunities for growth and the company sees full potential in the upcoming markets as well. Factors like growing income thresholds and understanding of luxury cars are the major drivers of sales in the rural markets.
Volvo Plug-In Hybrid Launch
– Volvo is planning to launch locally made XC90 plug-in hybrid in 2019
– The company is also looking to expand to smaller cities to increase the sales
– Their Bengaluru facility will host the assembly of the upcoming plug-in hybrid