Mumbai, January 28: Swedish luxury car maker Volvo Auto India has sold 821 cars in 2012, up from 320 units in 2011 and a near 150 percent growth in sales. The company has now targeted 35 percent growth in 2013 with sales of 1,100 units.
According to Tomas Ernberg, managing director, Volvo Auto India (pictured), “A growth of 150 percent in sales was possible only because of strategic associations Volvo had last year like the Volvo World Golf Challenge and the Lakme Fashion Week.
The expansion of our dealer network signals the importance of the Indian market to Volvo Cars. We believe that India holds tremendous potential for our brand and want to make sure that we fully capitalise on the opportunities available while at the same time providing the best possible services for our customers at the best value at the most competitive prices. In Q4 we have appointed three new dealer partners in Ahmedabad, Bangalore and Gurgaon. We also managed to update our facilities in Chandigarh, Coimbatore, Chennai, Delhi, Ludhiana and Mumbai, Delhi and Ludhiana being a 3S (Sales Service and Spares) facility showroom. In 2013 the company will continue its expansion in dealer network, starting with Kolkata.
The luxury car market has faced a dip in demand thanks to the government’s decision to increase the CBU rate from 60 percent to 75 percent. This policy has made luxury carmakers opt for the CKD to bring in their offerings at an aggressive price.
Like all segments in the Indian automobile sector, the luxury segment has borne the brunt of higher fuel prices, a weak rupee and the overall impact of a slowing economy. At the beginning of 2013, all top three carmakers have increased their retail prices by between five and 10 percent. In a slowing economy with interest rates remaining unchanged, the battle to be lux supremo continues.