Volvo Cars For India will not Come From China Plant

Volvo, a prominent name in the world of automobiles, was proposed to use the manufacturing facility based in China to supply the cars to Indian Auto market. But according to recent information, Volvo has overlooked the proposal and has no plans to ship the units from this China based manufacturing facility.

Volvo Car Corporation in August was acquired by China based Zhejiang Geely Holding Group and an announcement was made that company will be building a manufacturing unit in Shanghai. It was also claimed that the headquarter will be maintained in Sweden and the manufacturing units present at Belgium and Sweden will be used as well.

The Managing Director of Volvo India, Mr Paul de Voijs commented that the plant based in China will be used by the company to meet the local demand and they don't have any plans to export Volvo cars for Indian Auto market from this manufacturing unit. As per the reports, the Dutch and Swedish Volvo manufacturing units are built to give a total of 2,000 to 3,000 units every year.

As per the latest tax policy, the transporting cost will cost the company far less that establishing a dedicated plant on Indian ground. The company has to spend just $1200 to take a product from Antwerp to Kochi. As per the company officials the present import duty in India is 130% which leads to no prominent benefit on duty if the production is carried on locally.

The Volvo Plant based in China is designed to manufacture Volvo's luxury range of Volvo C30 and Volvo V70 cars and a capacity of 3 lakh cars will be built in Jiading Industrial Zone and the production will be triggered by end of 2012.

The all exclusive Volvo XC60, the compact luxury was launched in India recently and will be imported as a completely built unit (CBU).

Read More on : Volvo XC60 detailed review