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Volvo aims to double luxury market share

German carmaker Mercedes-Benz is the current market leader in India’s luxury-car market, followed by BMW and Audi.

, ET Bureau|
May 28, 2018, 10.28 AM IST
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Volvo aims to double luxury market share
Volvo is betting big on hybrids and electric vehicles to drive growth after 2020.
HYDERABAD: Volvo Cars, owned by Chinese automaker Geely, is targeting to double its market share in India to 10% of the luxury segment in the next two years. Luxury-car makers sold around 40,000 vehicles in the country in 2017 and the Swedish company expects the market to reach 50,000 units by 2020.

The segment is expected to grow 15% and “we expect Volvo Cars sales to go up to 5,000 units in the next two years”, a spokesperson said. This year, it expects to sell 2,600 cars in India across its nine models. In 2017, Volvo sold 2,029 cars, with its costliest products, the XC90 priced ?78 lakh to ?1.3 crore ex-showroom, accounting for the highest number.

German carmaker Mercedes-Benz is the current market leader in India’s luxury-car market, followed by BMW and Audi.

Volvo is betting big on hybrids and electric vehicles to drive growth after 2020. For now, it expects to get additional volumes in India from the newly launched XC60 and the XC40 which will be introduced in July.

The XC40, with three variants and to be priced between ?36 lakh and ?45 lakh, will be the cheapest SUV from Volvo in India. The company will start sales with the R Design, the costliest variant. The XC40 will compete with the Mercedes GLA and BMW X1 in a segment which currently witnesses sales of about 6,000 units. Volvo is targeting sales of about 1,000 XC40 units in its first full year after launch.

The company is planning to increase its dealership network from 21 outlets to 27 this year. The new outlets will come up in Madhya Pradesh and West Bengal.

“We will also give mobile outlets on rent to these dealers to penetrate into smaller towns and cities,” the spokesperson said.

Since Chinese auto major Geely took over Volvo Cars in 2010, its sales have expanded, with the company reporting global volume of 5.7 lakh units.

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