Capacity constraints keeping Volvo India from assembling the XC40

Unlike the BMW X1 and the Mercedes GLA, the Volvo XC40 is not assembled in India, and the compact SUV has global capacity constraints deterring localisation plans.

Volvo Cars launched the XC40 in India as a CBU import in July 2018. It was expected that months down the line, it will switch to CKD to shave off a few lakh rupees.

At the launch of the ‘Volvo Personal Service’ at Artemis Cars in Chennai, IAB asked Charles Frump, Managing Director, Volvo Cars India, when the local assembly of the XC40 will commence. “We’re not ready to make an announcement on that,” Frump said in response. Probed further, he said: “We have global capacity issues.”

The Volvo XC40 “is so hot” that its production has already been increased at the Ghent plant (Belgium) by 20,000 units since the launch. And acquiring enough volumes to commence local assembly in India is not possible at the moment. Frump said:

Until we can guarantee a certain volume, it’s difficult for me to make that CKD decision.

The Volvo XC40 is available in India in a single mechanical configuration: D4 AWD. Powering the compact SUV is a 2.0-litre diesel engine producing 190 PS and 400 Nm of torque. The 8-speed Geartronic automatic transmission and all all-wheel drive system work together to send drive to the wheels.

Also Read: New Volvo XC90 (facelift) confirmed to be launched in India this year

Volvo makes the XC40 in Momentum, R-Design and Inscription equipment lines, but offers only entry-level and range-topping options in India. Frump said the focus in 2019 is to increase the availability of the XC40 to Indian customers and assemble the XC90 PHEV by the end of the year, making Volvo India the first luxury brand to manufacture a hybrid vehicle.

Volvo XC40 - Prices*

• XC40 Momentum - INR 39,90,000
• XC40 Inscription - INR 43,90,000

*Ex-showroom