Volvo is not a subsidiary of Ford India any more. It has emerged as a separate company in India.

The Indian arm of the Swedish company has severed its ties with Ford India. This is a result of Ford Motor Company planning to sell Volvo Cars to potential buyer Chinese car maker Geely.

Volvo Cars India has changed its name to Volvo Auto India Pvt Ltd.
In 1999, Ford had acquired Volvo Cars from Volvo AB as part of its Premier Automotive Group, which then included Aston Martin, Jaguar and Land Rover. Volvo had begun operations in India in March last year as a subsidiary of Ford India, with all backend operations being handled by Ford.

Former Volvo Cars India has seven dealerships in the country which will increase to twelve by end 2010. The new dealerships will come up in Kolkata, Bangalore, Ahmedabad, Goa and Coimbatore. The company has sold about 100 units between March and December last year and sales for the current year is close to doubling. The luxury segment has grown by 20 per cent in India, whereas Volvo has grown by 23 per cent.

The Swedish luxury car major has plans to launch a luxury Sports Utility Vehicle (SUV) XC60 and a sedan S60 in India. Currently, it sells its top-end S80 sedan, the C70 and the XC90 in the Indian market. A diesel variant of the S80 is due next month.