Volvo India Failed In Terms Of Sales
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Volvo Car India Pvt. Ltd, which sells the S80 and XC90 models in the country, falls short of sales target in India. The Swedish car maker has expected to sell 500 cars in India but managed only 100 result the delays in expanding the company’s dealerships in the country.
Managing director for India Paul de Voijs said “We did not open as many dealerships as we had expected, owing to the exposure to the slowdown in the third quarter. Most of the plans moved to 2009.” “Moreover, we are relatively new in India and it takes time to understand how the market functions,” Voijs added.
The people around the industry saying that, Volvo didn’t do well in India because of its high pricing even for the premium segment, and a branding that leans more towards safety than luxury.
As a brand, a Mercedes or a BMW has a much higher prestige value than a Volvo, which is identified more with safety and less with luxury,” says R. Venkatraman, partner at consultancy firm AT Kearney Ltd.
The Volvo has another hole with it in selling that other German car makers have assembling in the country, Volvo imports its vehicle through dealerships, which adds to the price. In India, imported or CBU attract a duty of 108-100% that eventually leads to the high price.
Voijs says current volumes are too few to merit an assembling unit. He expects 2009 to be better for the luxury car market. Volvo plans to launch its premium sports utility vehicle, the XC60, in India in 2009 and appoint more dealers in Kochi, Pune, Bangalore and Chennai.
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Posted: February 28th, 2009 under Cars.
Tags: volvo, volvo cars, volvo india, volvo sales, volvo sales figure, volvo.co.in, volvo.com
