Swedish brand Volvo has begun assembling cars at their plant near Bangalore in India. Cars valued $40,000 or more that are brought into the country through the Completely Built Unit route attract an import duty of 100%. So to make the cars more affordable to Indian consumers, Volvo India will go the Completely Knocked Down route paying a 10% import duty on car components.
Volvo’s facility in India has its Scalable Product Architecture (SPA) modular chassis technology on which the company assembled its first XC90 SUV for India. SPA allows a wide range of cars, powertrains, electrical systems and technologies – all of differing complexity – to be fitted on the same architecture, generating significant economies of scale.
Indiancarsbikes.in quotes Volvo Auto India’s managing director Charles Frump as saying, “It’s a moment of great pride for all of us at Volvo Cars. The roll-out of the first locally assembled Volvo car speaks volumes for the company’s commitment to grow further in India. The last three years have been good for us in India.”
Last updated: December 26th, 2025
