Volvo's takeover by Geely not to impact India plans
Volvo Auto India on Monday said the acquisition of its parent Volvo by China's Geely will not have any impact on its plans for India.delhi Updated: Mar 29, 2010 19:08 IST
Volvo Auto India on Monday said the acquisition of its parent Volvo by China's Geely will not have any impact on its plans for India.
The company also said there has been no discussion about the possibility of the Chinese carmaker entering India through it.
"After what happened yesterday, Volvo will continue to be an independent division of Geely, headquartered in Sweden. We will directly report to Volvo in Sweden," Volvo Auto India Managing Director Paul de Voijs said.
Yesterday, Zhejiang Geely Holding Group bought the US auto giant Ford Motor's ailing Gothenburg-based Swedish car unit Volvo Cars for a whopping USD 1.8 billion.
In India, Volvo Cars had made its operations independent of Ford last October and the wholly-owned subsidiary was renamed as Volvo Auto India Pvt Ltd. Volvo Cars decided on its own about its India entry in 2007, followed by launch of its models and expansion business.
"We will continue with our own plans that have been announced earlier, which includes new products and network expansion," he said.
This year, the company plans to bring sports utility vehicle XC60 and sedan S60 in the Indian market.
The company is also planning to ramp up its dealership network in the country to 12 by the end of this year from the existing seven.
Asked if Volvo Auto India could serve as an entry point for Geely in India, Voijs said, "There has been no discussion on that and we will continue to function independently."
Volvo Auto India, at present, sells two models in the country -- sedan S80 priced at Rs 38-44 lakh and crossover XC90 with a price range of Rs 42.50-48.50 lakh. Both the cars are available in petrol and diesel variants and the company imports them from its plants at Sweden and Belgium.