Monday, 25 July 2011

Volvo Auto India does not plan to assemble cars in the country




Volvo Auto India has said that the company did not see the possibility of assembling cars in India as they were expecting a reduction on import duty on CBU’s to be finalized.  The India EU free trade agreement (India-EU FTA ) is likely to see customs duty halved (30%) for CBU’s.  This will benefit Volvo CBU’s and hence they did not see any scope of assembling cars in India too soon.
Mr. Paul de Voijs former Managing Director of Volvo Auto India said that import of CBU’s into India would continue as the company did not see any possibility of assembling cars here.  R. Tomas Ernberg took over as Managing Director of Volvo Auto India on Friday.

At present four cars are imported into India by Volvo Auto India.  These comprise of S60 and S80 and two SUVs namely XC60 and XC 90.  Since setting up base in India in 2008, Volvo Auto India sold 130 cars in 2010, and has a target of 400 cars during 2011.  Former managing director of Volvo Auto India, Paul de Voijs had this to say.  “In the foreseeable future, we do not see scope of local assembly in India and would continue to import cars as CBUs (completely built units). The India-EU FTA is round the corner as well.”

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