Swedish luxury car-maker Volvo Car expects to ‘accelerate’ its growth rate in India this year.
According to Charles Frump, Managing Director, Volvo Car India, the country is one of the “fastest growing markets”.
While India’s share in its global sales are still small, it is an “important market,” which is growing at “an extremely fast pace.”
The company, which sold over 2,000 cars in 2017 (28 per cent more than in 2016) expects sales to exceed last year’s. “We are pacing extremely fast,” Frump told newspersons on the sidelines of the inauguration of a new dealership here on Friday.
Volvo has eight models, including sedans, SUVs and a hatchback, in India.
Globally, the car-maker sold over 5.71 lakh vehicles in 2017 and achieved 14 per cent growth in the first quarter of 2018. The company is aiming for a 10-per cent share ofithe luxury car market in India by 2020, up from 5 per cent at present. The luxury car market in the country is pegged at around 40,000 units per annum.
The company, which currently has 22 dealerships across the country, plans to add six more — in Indore, Hubli, Rajkot, Noida and Thiruvananthapuram. Volvo has been witnessing a lot of traction from customers in tier-II towns, he said.
Electric vehicles
Volvo plans to shift all its new launches globally to the electric platform by 2019. By 2025 it plans to have 1 million electrified vehicles on the road globally.
In line with its global strategy, the company already has one plug-in hybrid model in the country.
“Electrification is already possible in India with our plug-in hybrid model,” he said.
Asked if the country is prepared for electric vehicles he said, “By 2030 the government is very intent on being electrified. How we get there needs to be spelt out.” While the infrastructure required for pure electric vehicles may be difficult, that for plug-in hybrids is quite simple, he said.