In what is looked upon as an interesting development, Volvo Cars and the Volvo Group are said to have entered into an arrangement to assemble Volvo cars in India at Volvo Group’s CV plant at Hosakote, Bangalore. The arrangement will enable the Swedish luxury car maker to avail of lower duties. The first car, the XC90 SUV, is expected to roll out of the Hosakote plant at the end of this year. Volvo cars are currently imported as CBUs, and attract high duty of approximately 120 per cent. This puts them at a cost disadvantage when compared to their competitors, which have invested in a plant locally. Volvo Group’s plant at Bangalore assembles the FM and FMX range of Volvo trucks. The new generation heavy-duty Eicher Pro 8000 series trucks are also made at this plant. The bus plant, separated by a wall, produces inter-city, city buses under the Volvo brand for local consumption and exports. The Group also makes UD city buses for local consumption.


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