On 27th December 2012, reputed Swedish auto manufacturer Volvo Auto India set up a dealership in Ahmedabad, entering the Gujarat market for the first time. The company wishes to make its presence felt in one of India's most industrialised states and aims to sell over a 150 units per month during 2013. Due to the nature of occupations and businesses handled here, the target market would be quite different from many other states in India.
Volvo India wishes to sell its vehicles to realtors, industrialists and diamond merchants. Arvind Thakkar, owner of Autobots and Shital Motors Private Limited (for M&M) feels that sales of SUVs (Sports Utility Vehicles) have been growing much faster than sedans. Autobots is the dealership which would be selling Volvo vehicles in Gujarat. Commenting on the current scenario, Thakkar said, “"Gujarat is an important market as it is considered to be one of the most affluent states in India. It is also an automobile hub and hence its imperative to make presence felt."
Four luxury vehicles have been selected by Volvo Auto India: Volvo SC90 (7 seater SUV), XC60 (compact luxury SUV), S80 (luxury sedan) and S80 (sports sedan). These would be available at Rs. 55 lakhs, Rs. 47 lakhs, Rs. 44 lakhs and Rs. 34 lakhs on road, respectively. Volvo Auto India is currently importing vehicles from Sweden and Belgium, to sell them as CBUs (Completely Built Units) in the country. There are no immediate plans of building manufacturing units in India.
As per Tomas Ernberg, Managing Director of Volvo Cars, the Indian luxury market would grow by 10-15 per cent in 2013, and Volvo is looking at a growth of 50 per cent. An ambitious target of selling 20,000 cars by 2020 in the country has been set by Volvo. In due course of time the actual sales figure will decide how well Volvo is able to deliver, for discerning Indian buyers.
