With sales of electric vehicles expected to increase in the coming year due to the development of charging infrastructure and price parity with internal combustion engine vehicles, Volvo Cars, a Swedish luxury carmaker, is looking into the possibility of establishing a new manufacturing facility in Asia outside of China.
While a final decision on the location of the new manufacturing unit for electric cars has yet to be made, Volvo Cars Global Chief Executive Officer Jim Rowan stated that India and Southeast Asian countries are among the contenders. The proposed facility will be used to meet domestic needs as well as ship vehicles to other markets around the world.
“We need to make sure that we can feed other countries other than just India from that location. And then, therefore, we need to look at the logistics of that. And also the cost benefits”, explained Rowan, adding, “But (we are looking) in Asia, that’s something that we’re looking at the moment.” Volvo Cars – which has firmed up plans to go all electric by the end of the decade – is also open to collaborating with a partner in the region for contract manufacturing.
