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Rediff.com  » Business » Volvo to start Indian operations by year-end

Volvo to start Indian operations by year-end

Source: PTI
February 06, 2008 19:32 IST
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Volvo Cars India on Wednesday said it will hold discussions with its parent in Sweden by the end of this year for starting assembly operations in the country, as it looks to launch new models to strengthen its foothold here.

The company, which is exploring possible synergies with Ford Motor India for its assembly operations here, would also include the US-headquartered firm in its discussions with its parent firm in Sweden. Ford Motor Co of the US owns Volvo passenger car business globally.

"By the end of this year, we would start discussing possible assembly operations in India with our parent in Sweden. As of now we have had no discussions with Ford on possible synergies in India but we might include them in our talks in Sweden," Volvo Car India Managing Director Paul de Voijs said.

He said the company needs at least a year's experience in the local market before it starts assembly operations here. The company is looking at launching new models to increase its presence in the fast-growing premium car market in India. Its convertible sedan C70 and crossover XC60 could soon make their way into India.

"We may introduce XC60 in India by next year while we are testing the market for C70 presently. XC60 would be launched globally by the end of this year," Paul said.

Volvo Cars, which entered the Indian market in September 2007, had earlier said that it was not averse to the idea of a joint manufacturing operations with Ford in the near future. Volvo had said it may replicate its Chinese and European models in India, where it operates in association with Ford and other group companies.

Volvo, which has received orders for 100 cars from India, expects to close calendar year 2008 with sales in excess of 500 units. It is also expanding its dealership network to have a pan-India presence. 

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