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Volvo Cars India plans local production of plug-in hybrids

Volvo Cars' Indian arm plans to start producing plug-in hybrid vehicles locally in the second half of 2019, The Economic Times (India) reported, citing a company executive.

The luxury car brand, owned by China's Geely Automobile Holdings Ltd., is looking to start production of a plug-in hybrid of the XC90 model at the company's Bangalore facility, Charles Frump, managing director at Volvo Cars India, reportedly told the newspaper.

The Bangalore plant, which opened in October 2017, started producing the XC90 and launched the X90 and XC60 production in 2018, according to the report.

The decision came after the Indian government lowered customs duty on imported electric car parts and components to 10% from 15% in January, the report said.

Volvo Cars India, which now operates 25 outlets, is also looking to tap rural markets in the country to expand its footprint, according to the newspaper.

Volvo's Indian arm reported a 30% rise in retail sales in 2019 to 2,638 units from 2,029 units in 2017.