After finding its footing, Volvo prepares for India’s luxury race
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Swedish luxury car maker Volvo is a relatively late entrant in the Indian luxury car market, but its strategy to launch its top SUV and sedan models in India seems to be paying off. See slideshow: The ultimate luxury crossovers
The company currently sells two sedans, the S60 and the S80, and two SUVS, the XC60 and the XC90, in the country.
Volvo, which entered India in 2007, sold 320 cars last year and expects sales to touch the 1000 mark this year.
The company hopes to grab a 15 per cent market share by 2020, and targets to sell at least 20,000 units by then, the car maker’s India managing director Thomas Ernberg said.
It is now seeing a waiting period of two-three months for the sedans and the XC60, Ernberg added.
To find a place in the increasingly competitive luxury car market, the company plans to launch another vehicle and also expand its dealership network. Ernberg expects the Indian luxury market to expand by 50 per cent this year.
Volvo plans to launch a new vehicle in September, Ernberg said, without elaborating on the type and the price of the automobile.
The company also plans to double its dealerships to 16 in the next two years.
The XC60 that Volvo offers in India is powered by a smaller two-litre engine compared with a 2.4-litre engine variant that it sells in other parts of the world. A smaller engine has brought down the price point of its cars and made it more competitive with other luxury carmakers such as BMW and Mercedes.
German auto maker Audi sold 759 units in June, marginally ahead of BMW’s 750, SIAM data showed.
In the same month last year, Audi's sales were at 354 units, while that of BMW were 890 units.
On the other hand, sales of Mercedes Benz stood at 622 units in June this year compared to 566 units in the year-ago month, it added.