Volvo, Ford join hands in India

Top-end European car maker Volvo is planning to target the Indian market by joining hands with Ford India Ltd., news website businessstandard.com reported in New Delhi Thursday.

Ford India's parent, the US-based Ford Motor, owns the Volvo car business.

The Indian subsidiaries of the two companies are planning a joint strategy under which Volvo will cater to the high-end market, while Ford will feed the mid-size segment.

Ford India president and managing director Arvind Mathew told the website that common platform models with Volvo cannot be ruled out in India.

Volvo plans to bring in its C30 and C70 cars, which share the platform with Ford's Focus range of cars, to India sometime next year.

The platform-sharing strategy stems from the growing luxury car market in the A4 segment, which grew by 49 per cent last fiscal to 40,964 units in 2006-07 from 27,529 units in 2005-06, the website reported.

This segment is being targeted by leading players like DaimlerChrysler, Audi and Porsche.

Meanwhile, Volvo will make its debut in India with a sedan (S80) and a sports utility vehicle (XC90).

As both the vehicles will be imported as completely built units (CBU) and attract a customs duty of about 110 per cent, their pricing will place them at the top end of the A5 segment.

Source: Xinhua