Volvo plans to set up assembling facility in India aiming 10% market share in premium luxury segment by 2020; will throw tough challenge to Mercedes, BMW and Audi
Volvo is aiming greater market share in the premium luxury segment of Indian auto market. In an attempt to achieve that goal, the Swedish luxury automaker is planning for localised assembling of its products in the country, with which it will be able to keep the pricing of products competitive against its German rivals like Mercedes-Benz, BMW and Audi.
Apart from selling cars at competitive pricing, local assembling will help Volvo India to increase the volume as well. The final decision regarding local assembling is yet to be approved by the Volvo headquarter and once it’s done, the company is expected to rush into assembling.
In the domestic market Mercedes-Benz is the strongest luxury automaker, while the other two German brands BMW and Audi are also pretty strong. Apart from that, Tata owned Jaguar and land Rover are also growing fast. Compared to these brands, Volvo lies far behind in terms of sales volume and market share. But, now with the demands for luxury cars growing in the country, Volvo aims to garner 10% market share by the end of 2020.
Speaking about the luxury car segment in the domestic auto market, around 36,000 units of premium luxury cars were sold last year, among which major numbers were attributed to three German brands. Volvo itself sold around 1,600 units last year, among which more than 750 units were its flagship premium SUV XC90. This marked 10% growth for the brand over 2015. Inspired by the success, it targets to sell at least 2,000 cars in 2017. Apart from selling brand new models, Volvo is also aiming to enter into the pre-owned car market by launching its global program Volvo Select in India.
Speaking about the brand’s strategy, Volvo Auto India’s managing director Tom Von Bonsdorff has said India being one of the fastest growing markets for the Swedish company, this year the automaker is looking forward to a double digit growth. Presently, Volvo India has 7 different models in its portfolio ranging from V40 to XC90, with price ranging between Rs. 25.99 lakh and Rs. 70.97 lakh (ex-showroom, New Delhi).