Sweden based luxury car brand Volvo that is owned by China based car maker Geely is all set to foray into the compact luxury car market segment in India. Volvo is aiming to compete withGermanybased challengers such as Mercedes-Benz, BMW and Audi with the launch of a couple of new offerings in the price bracket of less than 30 lakh.
Well, the new offerings from Volvo will be a small luxury hatchback V40 diesel and V40 Cross Country with a 1.6 litre petrol engine. These vehicles will be launched in the next few months as the firm is targeting a growth of 65 percent in the country this year to reach an annual sales target of 2,000 units.
Volvo AutoIndiais targeting to acquire 15 percent of the market in medium term, claimed its Managing Director Tomas Emberg. The firm is expanding its product portfolio and dealer network in the prime markets includingDelhiand Mumbai. Also, smaller cities includingVijayawadawill be playing a key role in the growth of the car maker.
Regarding this, the firm’s Managing Director claimed that the firm is on a growth plan since a few years. He added that in three years, the car maker’s dealer footprint has gone up to 20 from five and its sales have also increased significantly. He claimed that they will be closing this year with 2,000 units of sales led by the latest compact car.
Besides the new compact vehicles, Volvo is in plans to introduce the new S60 T6 petrol sedan in September alongside a 4-cylinder diesel XC 90 SUV model. It is said that Volvo has created a market for its offerings in Tamil Nadu andHyderabadas the market share in these regions is 12 percent to 15 percent. Notably, the market share of the firm inDelhiand Mumbai is still minimal.
Emberg believes that once volumes start picking up, the parent firm is expecting to take a call on setting up an assembly plant inIndia. This will eventually help the car maker to compete with the already aggressive rivals fromGermany. Volvo is claimed to differentiate from its rivals with technology, well-being and safety. To differentiate from others, Volvo AutoIndiawill provide air cleaners in its cars to offer a cleaner cabin and increased safety. The firm is also in plans to launch a diesel hybrid variant of XC90 in the next year and it is claimed that this vehicle will render higher fuel efficiency of 37 kmpl.