[Redline6800]

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.

[GTO]

Thread moved from the Assembly Line to the Indian Car Scene. Thanks for sharing!

[fx45]

Originally Posted by Redline6800

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.

[Jeroen]

Originally Posted by fx45

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

http://www.youtube.com/watch?v=zdXhmCrU3Wo

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

[GTO]

Originally Posted by fx45

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!

[PPS]

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.

Originally Posted by Redline6800

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.

[volkman10]

Originally Posted by Redline6800

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!

[hellmet]

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.

[M35]

"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]








source and more pictures

2014 -S60




source and more pictures

2014-XC60






source and more pictures

Pic courtesy: http://car.autohome.com.cn

[ajmat]

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

[drmohitg]

So can we expect a further price reduction to a more competitive level, perhaps even undercutting the germans, now with the CKD route?

[vb-saan]

Originally Posted by drmohitg

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.

[samyboy]

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.

[S@ndy]

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

[Achyuth Vaibhav]

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