JOIN US Swedish luxury car manufacturer Volvo Auto India has said the company will consolidate its position in the premium car market in India as part of its strategy to capture a 15 per cent share of the market.
Volvo's India stable currently comprises four cars — S60, S80, XC60 and XC90 — available in prices starting from Rs 27 lakh (ex-showroom Delhi). A crossover version pegged in the premium category, the V40 Cross Country, is set to be launched in the next few months, company officials said.
On the sidelines of a dealership launch in Bangalore on Tuesday, Volvo Auto India Managing Director Tomas Ernberg said that Volvo plans to grow slowly, first by becoming a popular brand in the country, and then making a foray into the regional markets.
Since making its India foray in 2007, the company has sold 1,800 cars in the country. Of this, 820 were sold last year alone. “By the end of this year, we plan to sell 1,100 more cars,” Ernberg said, adding that all of its cars are sold as completely built units (CBUs).
The company is also adding more dealerships to its pan-India network. It launched its first showroom in Karnataka on Tuesday — a 7,000 sq ft facility in Bangalore called Martial Motors.
“In line with our growth, Volvo will continue with its expansion plan in India by adding to its existing network across the country. We will touch 12 dealerships with three more opening this quarter,” Ernberg said. “India has great potential to become a major market for Volvo cars. Being one of the fastest growing markets in the world, with a rising lifestyle and aspiration, especially among the youth, the country has motivated us, as premium car makers, to build demand for our brand and products and establish ourselves well here,” Ernberg added.
It must be noted that in China, home to Geely which acquired Volvo in 2010, the company has managed to sell around 50,000 cars from a modest 5,000 in the last five years.
“The promising nature of the Indian market also provides us with such opportunities for growth,” Ernberg said.
According to Volvo Cars Vice-President (International) Thomas Andersson, “Volvo has ambitious plans in the coming years in R&D related to engine design, incorporating four-cylinder technology, which is being tested for our petrol and diesel engines.
Another innovation under development is scalable platform architecture to guarantee the quality and safety of our products.” These technologies will be used in future Volvo cars in India as well, which could include certain models showcased in the last Geneva Auto Show.