Volvo’s presence in India is meager yet the company wants to step ahead in a slow pace. The financial status and market feedback are reasons best cited for this, said its MD of Auto India. The company is contented that it could please the customers and there will be 3 more dealers taking the total to 10. The company is said to have understood the need for minimum 10-12 dealers to cover all Tier-I and Tier-II cities.
Volvo is aware that India is along with world’s top car markets comprising China, Japan, the Us and Germany. The potential for the luxury segment is still low with 0.5% but has prospects, he said. He clarified the difference between Russia and India regarding luxury segment. In 2008, Russia witnessed growth of 10times in ten years(constituting 5% of the total car market).
The need of the hour for Volvo in India is establishing its presence and spreading its brand image across the country. The promising status – 91 units in 208 increased to 141 in 2009- made the company to revitalize the presence in a gradual phase. Volvo is in the process of importing its units as CBUs to adjust to the market size as well as anticipating cut on import duty for CBU. Further, its units in Sweden and Belgium are not running with full capacity.
The current ranges will be added by XC 60(SUV) and S60 sedan which may be a global launch. The price factor seems to boost the sale in both small as well as luxury segments, he said. Volvo entered into Indian car market with its Volvo S80 sedan and Volvo XC90 SUV, both imported from Sweden.