Volvo Auto India targets sales of 2,000 units in 2015

Volvo Auto India (VAI) plans to sell 2,000 cars in 2015, 66 percent more than its 2014 sales of 1,200 units, said Tomas Ernberg, managing director, speaking at the opening of the company’s first dealership in Mumbai. The company sold 913 units in 2013.

According to Ernberg, VAI which currently has 14 dealers hopes have 20-22 across India by end-2015 including its second dealership at a South Mumbai location.

The company, which entered India in 2007, sells its cars as Completely Built Units (CBUs). When asked whether it has plans to set up an assembly plant, Ernberg said there is “no timeline” as of now and that when the numbers justify it, a decision will be taken. The company’s model range includes the V40, S60, S80, XC60 and XC90.

To bring in entry-level volumes, VAI will bring in two variants of the V40 (a level under the cross-country version) with a diesel and 1.6 petrol that will retail for under Rs 30 lakh. This model will compete against the Mercedes-Benz A-class. It will bring in its S60 sedan with a T6 petrol and an all-new XC90 SUV by September 2015. VAI is targeting orders for 500 XC90s, with 70 percent delivered by December 2015.

With its first Mumbai dealership, VAI hopes to tap an important market that accounts for 20 percent of India’s luxury car sales. Top sources at the new dealer, KIFS, said the dealership aims to sell 200 cars in its very first year.

VAI, whose parent company is owned by Geely of China, hopes to achieve its ambitious 2015 target by selling more models and widening its dealer network. The company, which has a three percent market share in the luxury car segment, hopes to enhance this to 5 percent, and further to 10 percent, in about two years, Ernberg said.

The cars that will be sold in India will be shipped in from Volvo plants in Gothenburg in Sweden and Ghent in Belgium. Apart from these locations, Volvo Cars has a manufacturing unit in China that caters to that country’s market and an assembly line in Malaysia and Thailand.

With its new Mumbai dealership, Volvo has also brought in a new service initiative called the Volvo Personalised Service. The initiative has been launched globally.

Also read:  Volvo Cars looking for Indian partner for local assembly