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2012-12-28 10:25

FOLLOWING THE MONEY: Volvo is considering opening a car manufacturing plant in India, seeing as many other car-makers are thriving in the country.

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2012 Volvo V60 production

kalahari.com

NEW DELHI, India - Swedish automaker Volvo is studying the possibility of setting up a vehicle manufacturing plant in India as part of a drive to double global sales.

Volvo, now owned by Chinese group Geely Automobile, aims to increase worldwide sales to 800 000 by 2020 from a current 440 000 in 2012

INCREASING WEALTH

Volvo Auto India's managing director Tomas Ernberg said: "It makes sense to set up a car plant in India as we target sales there of 20 000 a year by 2020. A group within Volvo is conducting a feasibility report.”

Volvo sold 820 cars in India in 2012, 320 in 2011 and is hoping for 1200 in 2013.

Luxury brands have a dealer in many large Indian cities, attracted by the growing numbers of wealthy Indians. Around 28 000 luxury cars were sold in India by players such as Mercedes, Audi, BMW and Volvo in 2012. Along with China, India has become a key market for global automakers as growth in Europe and the US slowed.

Sweden's Volvo Bus, a separate company, entered India in 2002 to make heavy-duty trucks before moving into the luxury bus segment. The company has a large bus factory near the southern city of Bangalore.

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