Volvo to launch cheaper stripped-down car variants in India!

RavenAvi · 23rd July 2011, 21:48

Volvo is considering the launch of cheaper stripped down variants of its cars in India. The company plans to boost its sales volume significantly and is relying on the increasing demand of luxury cars in the country to help them achieve their sales target.

BMW and Audi have basic variants of its cars, while Mercedes-Benz is also planning to launch stripped down versions of the C-Class and E-Class. The base variants of the BMW X1, 3-Series and 5-Series account for more than 50% of the sales of the Bavarian automaker in the country and now Volvo too plans to remove equipment from some of its cars, including the recently launched S60 sedan.

The basic Volvo vehicle (the S60) has a starting price of Rs. 38 lakhs. The Swedish Chinese automaker imports all its vehicles to the country as it lacks any assembly or manufacturing facility in India. This not only attracts a hefty 110% duty but also leads to expensive spare parts for the cars.

A stripped down variant, which could loose equipment such as sunroof, blind spot assist and leather seats will help Volvo play the value game in the highly competitive Indian car market.

But will a stripped down Volvo work vis-a-vis a stripped down BMW?

SOURCE - Motorbeam (Volvo To Launch Cheaper Car Variants | MotorBeam - Indian Car Bike News & Reviews)

auto-one · 23rd July 2011, 22:30

I would be personally disappointed to see a stripped-down Volvo. The brand's plus points are the unique features it offers, esp. the safety ones.
A stripped-down Volvo variant may not be appealing to the customers who would rather prefer a stripped down BMW or a Mercedes.

vb-saan · 23rd July 2011, 22:35

In International markets, the S60 is now available with a 1.6L petrol motor (sourced from Ford). This 4-pot motor is quite capable with 180bhp power and 240nm torque, and does 0-100 in less than 10 seconds. This specific variant (T4) is quite stripped down in comparison with the standard T5 and high-end 304 bhp T6 (reviewed by GTO in the forum). Here in Singapore, this car in an identical variant is around 25% cheaper than the T6. Key missing luxuries are sunroof, keyless entry and operation, rain sensor, high performance sound system with iPod connectivity, Bluetooth handsfree etc.

I doubt if they will really lower their safety features. Even if they get a similar stripped down diesel in India, it’s still going to cost huge due to the CBU factor.

devarshi84 · 24th July 2011, 01:37

At a time when the Swedish are having trouble competing shoulder to shoulder with the Germans, it is but sad that they are giving up. Saab is already on life support for 3 years now and a supplier has also asked for bankruptcy.

Volvo is certainly faring better but while a cheaper model may bring in profits, it is a huge hit on the brand value. History is proof that the Chinese have not exactly been experts at acquisitions of larger companies.

volkman10 · 25th July 2011, 10:52

Volvo Confirms not to start assembly of cars in India!

"The India EU free trade agreement (India-EU FTA ) is likely to see customs duty halved (30%) for CBU’s. This will benefit Volvo CBU’s and hence they did not see any scope of assembling cars in India too soon"

Could expect drop in the Kizashi prices too if the above comes in effect!

Volvo Auto India does not plan to assemble cars in the country | Rush Lane

Cheers!

GTO · 25th July 2011, 19:02

People buy stripped down BMWs because they want the badge. Well, no one really lusts for a Volvo badge the way they do for Mercedes or BMW. Why would Volvo want to lose one of its USPs? Why would anyone want to drive around in a stripped down Volvo? I mean, the customer would instead choose a Superb which has everything, including superior brand recognition too. Volvo is crazy if they think the same strategy that worked for BMW can work for them.

They're still finding their feet in India, but can't afford to make such mistakes....mistakes that will affect the brand negatively in the long run.

n:CorE · 25th July 2011, 19:17

Quote:

Originally Posted by volkman10

Volvo Confirms not to start assembly of cars in India!

"The India EU free trade agreement (India-EU FTA ) is likely to see customs duty halved (30%) for CBU’s. This will benefit Volvo CBU’s and hence they did not see any scope of assembling cars in India too soon"

Could expect drop in the Kizashi prices too if the above comes in effect!

Volvo Auto India does not plan to assemble cars in the country | Rush Lane

Cheers!

Is this true!

Customs duty to be halved for CBU's? This could be really good, especially for cars like the Camry and Teana. Not to forget to mention the price cuts on the other luxury CBU cars. This is very good news

As for the volvo, I couldn't agree with GTO more! BMW and Mercedes have a desirable brand image. Hence the stripped down versions worked (atleast for BMW). Volvo has completely lost it.

sidoza · 25th July 2011, 19:19

Quote:

Originally Posted by GTO

People buy stripped down BMWs because they want the badge. Well, no one really lusts for a Volvo badge the way they do for Mercedes or BMW. ... They're still finding their feet in India, but can't afford to make such mistakes....mistakes that will affect the brand negatively in the long run.

They have to compete on price if they cant compete on product or brand. People might start buying Volvo's if they come at a price that's attractive enough. Volvo can build on this but right now it needs a reference-able customer base to begin with.

And lets not forget their products are already burdened because of duties, which they can't get rid of in the near future at least.

This is a good move in my opinion. Otherwise, Volvo would remain a by-stander in our market.

.anshuman · 25th July 2011, 19:27

More than the cheaper stripped down variants they need better Presence across the country. The S60 and XC60 are pretty good value for money but where to buy them from. Some time back when a friend was looking for car in the segment i suggested him to have a look at Volvo XC60, he asked me to accompany him, on a Sunday the only dealership in Delhi was closed, when everyone else was ready to send their cars home for TD.

23rd July 2011, 21:48	#1
RavenAvi Distinguished - BHPian Join Date: Jun 2011 Location: Flying Around Posts: 6,668 Thanked: 47,585 Times View My Garage	Volvo to launch cheaper stripped-down car variants in India! Volvo is considering the launch of cheaper stripped down variants of its cars in India. The company plans to boost its sales volume significantly and is relying on the increasing demand of luxury cars in the country to help them achieve their sales target. BMW and Audi have basic variants of its cars, while Mercedes-Benz is also planning to launch stripped down versions of the C-Class and E-Class. The base variants of the BMW X1, 3-Series and 5-Series account for more than 50% of the sales of the Bavarian automaker in the country and now Volvo too plans to remove equipment from some of its cars, including the recently launched S60 sedan. The basic Volvo vehicle (the S60) has a starting price of Rs. 38 lakhs. The Swedish Chinese automaker imports all its vehicles to the country as it lacks any assembly or manufacturing facility in India. This not only attracts a hefty 110% duty but also leads to expensive spare parts for the cars. A stripped down variant, which could loose equipment such as sunroof, blind spot assist and leather seats will help Volvo play the value game in the highly competitive Indian car market. But will a stripped down Volvo work vis-a-vis a stripped down BMW? SOURCE - Motorbeam (Volvo To Launch Cheaper Car Variants \| MotorBeam - Indian Car Bike News & Reviews)
	(3) Thanks

23rd July 2011, 22:30	#2
auto-one BHPian Join Date: Jan 2009 Location: Pune Posts: 237 Thanked: 13 Times	Re: Volvo to launch cheaper stripped-down car variants in India! I would be personally disappointed to see a stripped-down Volvo. The brand's plus points are the unique features it offers, esp. the safety ones. A stripped-down Volvo variant may not be appealing to the customers who would rather prefer a stripped down BMW or a Mercedes.
	(1) Thanks

23rd July 2011, 22:35	#3
vb-saan Team-BHP Support Join Date: Feb 2010 Location: S'pore/Thrissur Posts: 7,270 Thanked: 12,398 Times	Re: Volvo to launch cheaper stripped-down car variants in India! In International markets, the S60 is now available with a 1.6L petrol motor (sourced from Ford). This 4-pot motor is quite capable with 180bhp power and 240nm torque, and does 0-100 in less than 10 seconds. This specific variant (T4) is quite stripped down in comparison with the standard T5 and high-end 304 bhp T6 (reviewed by GTO in the forum). Here in Singapore, this car in an identical variant is around 25% cheaper than the T6. Key missing luxuries are sunroof, keyless entry and operation, rain sensor, high performance sound system with iPod connectivity, Bluetooth handsfree etc. I doubt if they will really lower their safety features. Even if they get a similar stripped down diesel in India, it’s still going to cost huge due to the CBU factor. Last edited by vb-saan : 23rd July 2011 at 22:36. Reason: comment added
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24th July 2011, 01:37	#4
devarshi84 Senior - BHPian Join Date: Jun 2005 Location: Ahmedabad - Tor Posts: 4,024 Thanked: 211 Times View My Garage	Re: Volvo to launch cheaper stripped-down car variants in India! At a time when the Swedish are having trouble competing shoulder to shoulder with the Germans, it is but sad that they are giving up. Saab is already on life support for 3 years now and a supplier has also asked for bankruptcy. Volvo is certainly faring better but while a cheaper model may bring in profits, it is a huge hit on the brand value. History is proof that the Chinese have not exactly been experts at acquisitions of larger companies.
	() Thanks

25th July 2011, 10:52	#5
volkman10 Distinguished - BHPian Join Date: Dec 2010 Location: -- Posts: 23,415 Thanked: 67,823 Times View My Garage	Re: Volvo to launch cheaper stripped-down car variants in India! Volvo Confirms not to start assembly of cars in India! "The India EU free trade agreement (India-EU FTA ) is likely to see customs duty halved (30%) for CBU’s. This will benefit Volvo CBU’s and hence they did not see any scope of assembling cars in India too soon" Could expect drop in the Kizashi prices too if the above comes in effect! Volvo Auto India does not plan to assemble cars in the country \| Rush Lane Cheers!
	() Thanks

25th July 2011, 19:02	#6
GTO Team-BHP Support Join Date: Feb 2004 Location: Bombay Posts: 70,533 Thanked: 300,535 Times View My Garage	Re: Volvo to launch cheaper stripped-down car variants in India! People buy stripped down BMWs because they want the badge. Well, no one really lusts for a Volvo badge the way they do for Mercedes or BMW. Why would Volvo want to lose one of its USPs? Why would anyone want to drive around in a stripped down Volvo? I mean, the customer would instead choose a Superb which has everything, including superior brand recognition too. Volvo is crazy if they think the same strategy that worked for BMW can work for them. They're still finding their feet in India, but can't afford to make such mistakes....mistakes that will affect the brand negatively in the long run.
	() Thanks

25th July 2011, 19:27	#9
.anshuman Distinguished - BHPian Join Date: Dec 2004 Location: Good-Gaon Posts: 7,763 Thanked: 11,064 Times View My Garage	Re: Volvo to launch cheaper stripped-down car variants in India! More than the cheaper stripped down variants they need better Presence across the country. The S60 and XC60 are pretty good value for money but where to buy them from. Some time back when a friend was looking for car in the segment i suggested him to have a look at Volvo XC60, he asked me to accompany him, on a Sunday the only dealership in Delhi was closed, when everyone else was ready to send their cars home for TD.
	() Thanks