Go Back   Team-BHP > BHP India > The Indian Car Scene


Reply
 
Thread Tools Search this Thread
Old 22nd March 2013, 15:11   #1
BHPian
 
Join Date: Aug 2008
Location: Bangalore
Posts: 128
Thanked: 535 Times
Default Volvo Cars considering local assembly in India

NDTV reports that Volvo cars is looking at setting up local assembly operations in India. Volvo has highly ambitious plans to sell 20,000 cars in India by 2018. It'll be a tall order to compete with Mercedes, Audi & BMW at the same price points. Last year, BMW sold 9,375 units, followed by Audi with 9,003 units and Mercedes selling 7,138 units. Jaguar Land Rover managed to sell 2,288 units in the same period. In comparison, Volvo sold merely 821 cars (compared to 320 units in 2011). Volvo's India boss - Tomas Ernberg - said that the company is targeting sales of 1,100 units this year.



Since its entry in India, Volvo has been importing its offerings through the CBU route. This approach has been dealt a blow with the excise duty hike of 25% in the budget. NDTV has reported that Volvo AB (commercial vehicles) could provide support through its manufacturing facility in Bangalore.

The Volvo car division is owned by Chinese automaker Geely, the only ties with Volvo AB being the name and logo. This would make plans for sharing of facilities time consuming and they could take some time to fructify (if at all matters proceed).

Volvo targeted High Networth Individuals in India through partnering with events such as the Volvo World Golf Challenge and Lakme Fashion Week. This approach seems to have helped the company, indeed Volvo says that it climbed to second place in luxury car sales in Hyderabad last year. Volvo is now planning a similar approach in Bangalore.

Volvo's biggest obstacle is low brand aspiration among Indian car buyers.

Last edited by GTO : 22nd March 2013 at 19:46.
Redline6800 is offline   (6) Thanks Reply With Quote
Old 22nd March 2013, 16:10   #2
GTO
Team-BHP Support
 
GTO's Avatar
 
Join Date: Feb 2004
Location: Bombay
Posts: 44,556
Thanked: 68,132 Times
Default Re: Volvo Cars considering local assembly in India

Thread moved from the Assembly Line (The "Assembly Line" Forum section) to the Indian Car Scene. Thanks for sharing!
GTO is offline   Reply With Quote
Old 22nd March 2013, 16:42   #3
BANNED
 
Join Date: Jun 2007
Location: mumbai
Posts: 1,579
Thanked: 120 Times
Infractions: 0/1 (5)
Default Re: Volvo Cars considering local assembly in India

Quote:
Originally Posted by Redline6800 View Post
Volvo's biggest obstacle is zero brand aspiration among Indian car buyers.
I think this statement is a bit unfair to the brand. Its definitely less than aspiration for German cars but a "zero" is completely inaccurate.
fx45 is offline   (4) Thanks Reply With Quote
Old 22nd March 2013, 17:39   #4
Senior - BHPian
 
Join Date: Oct 2012
Location: Delhi
Posts: 2,567
Thanked: 4,578 Times
Default Re: Volvo Cars considering local assembly in India

Quote:
Originally Posted by fx45 View Post
I think this statement is a bit unfair to the brand. Its definitely less than aspiration for German cars but a "zero" is completely inaccurate.
Well, as a brand they do have a certain reputation. They are the absolute boring family saloon. Safe, reasonable reliable, but absolutely nothing to get exited about.

In a earlier live I've had three, a 340 (which really was a DAF) a S60 and a V70.

I hated them with a passion. But they got the family, three kids, strollers, pampers, maxi cosy etc safely and comfortably where ever we went. By the way the V70 was green too, it doesn't get more boring than a green Volvo V70

The T5 version I've never driven, but is probably a hoot!

Drive safely and don't get over exited on the Volvo's. Try googling for "what kind of persons drives a Volvo and you'll get my drift. Or watch this Volvo commercial All terribly nice folks from decent families looking for a decent family car. You don't needs to understand the various languages spoken or to read the subtitles (which are in Dutch) to fall asleep half way through. And this is supposed to promoto Volvo. Even their marketing is boring.

Jeroen
Jeroen is offline   (1) Thanks Reply With Quote
Old 22nd March 2013, 19:47   #5
GTO
Team-BHP Support
 
GTO's Avatar
 
Join Date: Feb 2004
Location: Bombay
Posts: 44,556
Thanked: 68,132 Times
Default Re: Volvo Cars considering local assembly in India

Quote:
Originally Posted by fx45 View Post
I think this statement is a bit unfair to the brand. Its definitely less than aspiration for German cars but a "zero" is completely inaccurate.
No problemo! Changed to "low"

Fact is, unlike the west where Volvo is still known as a car maker, a majority of our population equates the Volvo brand only with buses!
GTO is offline   Reply With Quote
Old 22nd March 2013, 20:13   #6
PPS
Senior - BHPian
 
PPS's Avatar
 
Join Date: Dec 2010
Location: mumbai
Posts: 1,847
Thanked: 1,635 Times
Default Re: Volvo Cars considering local assembly in India

I personally love the looks of the S60 & XC60 but if i remember correctly they launched cheaper variants of both the cars but did it make any difference in their sales figures? I don't think so! They need better presence all over the country & also brand promotion. Everyone aspires to own the big 3 but there are only a handful who aspire to own a Volvo.

Quote:
Originally Posted by Redline6800 View Post
Volvo targeted High Networth Individuals in India through partnering with events such as the Volvo World Golf Challenge and Lakme Fashion Week.
Co-incidentally saw a XC60 today morning with the Lakme Fashion Week sticker on the car with a pretty model seated at the back.
PPS is offline   Reply With Quote
Old 22nd March 2013, 20:23   #7
Senior - BHPian
 
Join Date: Dec 2010
Location: --
Posts: 8,097
Thanked: 11,319 Times
Default Re: Volvo Cars considering local assembly in India

Quote:
Originally Posted by Redline6800 View Post
NDTV has reported that Volvo AB (commercial vehicles) could provide support through its manufacturing facility in Bangalore.
This would make plans for sharing of facilities time consuming and they could take some time to fructify (if at all matters proceed).
Good if this happens but I doubt this as the Volvo AB facilty seems highly booked due to the bus orders on hand!

Cheers!
volkman10 is offline   (1) Thanks Reply With Quote
Old 22nd March 2013, 21:45   #8
BHPian
 
hellmet's Avatar
 
Join Date: Oct 2005
Location: GTA
Posts: 807
Thanked: 620 Times
Default Re: Volvo Cars considering local assembly in India

This might sound crazy, but I had no idea Volvo had been selling cars in India at all, until I read this thread! I thought those one or two volvos on the road were completely imported.
hellmet is offline   Reply With Quote
Old 23rd March 2013, 20:17   #9
M35
BHPian
 
M35's Avatar
 
Join Date: Dec 2012
Location: KL 9
Posts: 580
Thanked: 1,075 Times
Default Re: Volvo Cars considering local assembly in India

Quote:
"We are competing against stronger German rivals who have put up a huge distribution network that's aided by local plants to roll out cars at lower taxes. But we have to import cars by paying higher taxes. So, it'll make sense to assemble our cars locally to pass on the benefits to our customers and increase our share in the Indian market," said Volvo Auto India MD Tomas Ernberg.

Backed by an Asian management, Volvo now plans to revamp its car offerings and also add a new authentic brand experience for customers. "We are realigning our dealership network as well as introducing new products with smaller and fuel-efficient engines," added Ernberg.

Currently, Volvo has seven showrooms in India and would open three more in Delhi, Bangalore and Gurgaon this year. It also plans to introduce the V40 Cross Country in the Indian market that's expected to be priced close to the entry-level models from the German luxury carmakers.

The V40 Cross Country will be imported and deliveries of the car are likely to begin by May this year. Volvo also plans to refresh its current line-up — the high-selling S60, and the XC60 — by making major design changes later this year, while also giving a minor facelift to the top-end S80 sedan. The company aims to take its market share to around 3-4% in the luxury car market from the miniscule 1% this year, and has set a target to sell around 1,200 cars this year.
source:

V40 Cross Country [2013]

Name:  vcc6.jpg
Views: 3893
Size:  111.5 KB

Name:  vcc5.jpg
Views: 3511
Size:  88.2 KB

Name:  vcc4.jpg
Views: 3548
Size:  117.2 KB

Name:  vcc3.jpg
Views: 4285
Size:  75.1 KB
source and more pictures

2014
-S60

Name:  s601.jpg
Views: 3675
Size:  138.6 KBName:  s602.jpg
Views: 3450
Size:  83.7 KB

Name:  s603.jpg
Views: 4832
Size:  103.0 KB
source and more pictures

2014-XC60

Name:  xc601.jpg
Views: 11590
Size:  146.2 KBName:  xc602.jpg
Views: 3876
Size:  116.2 KB

Name:  xc603.jpg
Views: 28039
Size:  122.9 KB

Name:  xc604.jpg
Views: 3225
Size:  121.2 KB
source and more pictures

Pic courtesy: http://car.autohome.com.cn
M35 is offline   (1) Thanks Reply With Quote
Old 23rd March 2013, 23:55   #10
Team-BHP Support
 
Join Date: Feb 2004
Location: Bangalore
Posts: 11,521
Thanked: 8,021 Times
Default Re: Volvo Cars considering local assembly in India

Although not clearly stated, the original plan was fro Volvo cars to be assembled by Ford in Chennai, similar to what was being done in China. Unfortunately the ownership changes from Ford to Geely meant this did not happen in India and Volvo production being wound down until transferred to Geely entities.

Am sure HM, Fiat, and some other will have space capacity to offer. South Africa used to see crazy ties ups a long time ago - Mercedes assembled the Honda Accord, Nissan assembled some fiats etc
ajmat is offline   (4) Thanks Reply With Quote
Old 24th March 2013, 09:24   #11
Distinguished - BHPian
 
drmohitg's Avatar
 
Join Date: Sep 2010
Location: Delhi
Posts: 4,202
Thanked: 2,983 Times
Default Re: Volvo Cars considering local assembly in India

So can we expect a further price reduction to a more competitive level, perhaps even undercutting the germans, now with the CKD route?
drmohitg is online now   (1) Thanks Reply With Quote
Old 24th March 2013, 09:55   #12
Distinguished - BHPian
 
vb-san's Avatar
 
Join Date: Feb 2010
Location: S'pore/Thrissur
Posts: 4,476
Thanked: 3,134 Times
Default Re: Volvo Cars considering local assembly in India

Quote:
Originally Posted by drmohitg View Post
So can we expect a further price reduction to a more competitive level, perhaps even undercutting the germans, now with the CKD route?
That should be the way forward for Volvo, if they really want to get a market share. Globally I can see that they are priced a bit lower compared to German trio, and with their new modern designs they are able to shake off the boring tag.
IMO, the S60/XC60 will do well, if those priced a few lakhs above the Jetta/Yeti instead of going so close to the BMW 3/X3.
vb-san is offline   Reply With Quote
Old 24th March 2013, 11:00   #13
BHPian
 
Join Date: Aug 2012
Location: Mumbai
Posts: 124
Thanked: 49 Times
Default Re: Volvo Cars considering local assembly in India

I am a fan of Volvo S60 T6 4WD with 304 horses under the hood. They have to consdier some changes to adapt to the local conditions like adding a spare wheel and raising the car a bit if they really want these to appeal Indian buyer. Just assembling them here is not going to cut it.

None the less, overall a welcome move.
samyboy is offline   (1) Thanks Reply With Quote
Old 24th March 2013, 21:09   #14
BHPian
 
S@ndy's Avatar
 
Join Date: Jun 2012
Location: Amritsar/PB 02
Posts: 219
Thanked: 248 Times
Default Re: Volvo Cars considering local assembly in India

Volvo, as a brand associated with trucks and buses, could have a hard time keeping up with it's aggressive German rivals, who are pretty quick in taking marketing decisions. A good, VFM product price, along with sensible marketing strategies and business decisions, could see them zoom past from the position they're right now in. The S60, XC60 and V40 Cross Country are the products which are a complete shift from boxy and boring volvos of past. They just need to ignite the spark that generates a factor of desirability in the minds of demanding luxury car customers. They should propogate the USP of their cars, Safety along with driving fun (S60) so as to be a real competitor to the Germans. They really gotta be aggressive to revamp their position as well as dealer number here so as to be a success!

Keep revvin' Volvo,
S@ndy

Last edited by S@ndy : 24th March 2013 at 21:11.
S@ndy is offline   (1) Thanks Reply With Quote
Old 24th March 2013, 21:19   #15
BHPian
 
Achyuth Vaibhav's Avatar
 
Join Date: Feb 2013
Location: Vellore(TN,Ind)
Posts: 374
Thanked: 207 Times
Default Re: Volvo Cars considering local assembly in India

Local assembly will greatly help their cause. Whole of their range is imported as CBU's so they will get huge price cuts after the local assembly. They also should have a good advertising team to make their products popular. By these steps they can make the German Trio sweat a lot.

Cheers

Achyuth
Achyuth Vaibhav is offline   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
Mini starts local assembly at BMW's Chennai Plant GTO The Indian Car Scene 38 18th December 2014 13:20
Audi India kickstarts local assembly of Q3 crossover JayPrashanth The Indian Car Scene 3 20th September 2013 04:59
India Kawasaki Motor mulls local assembly of more sportsbikes JayPrashanth Superbikes & Imports 4 17th September 2013 07:53


All times are GMT +5.5. The time now is 19:01.

Copyright 2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks