Volvo Car Group, the Swedish company owned by China’s Zhejiang Geely Holding, is committed to making China the centrepiece of its global expansion plan
21 Nov 2014 | 4713 Views | By Autocar Professional Bureau
Volvo Car Group, the Swedish company owned by China’s Zhejiang Geely Holding, is committed to making China the centrepiece of its global expansion plans by establishing new manufacturing facilities and ensuring its most up-to-date models are manufactured in China and made available for sale both domestically and internationally.
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Volvo Car Group, the Swedish company owned by China’s Zhejiang Geely Holding, is committed to making China the centrepiece of its global expansion plans by establishing new manufacturing facilities and ensuring its most up-to-date models are manufactured in China and made available for sale both domestically and internationally.
China is poised to replace the US as Volvo Cars largest market in 2014 with sales of at least 80,000 cars, up from 61,146 in 2013, highlighting the company’s growing presence in the world’s fastest growing automobile market.
The premium segment of the car market in China is forecast to grow by 20 per cent this year. Volvo Cars expects to outpace this growth in 2014, indicating it is gaining market share from its competitors. It has a long-term goal of selling 200,000 cars a year in the country.
Volvo Cars underlined its long term commitment to China earlier this month by significantly expanding its manufacturing facility in Daqing, China. Daqing will make some of the most innovative vehicles in Volvo’s product range, based on its Scalable Product Architecture (SPA), a modular vehicle technology. This move will make Daqing one of the most advanced car making facilities in China. The first SPA Volvo to be made in Daqing will be an all-new premium Sedan.
Also this month Volvo Cars started production of its bestselling XC60 at its plant in Chengdu. The XC60 is the second model to be produced in Chengdu after the plant started production of the Volvo S60L long wheel base sedan in November 2013. The XC60 is the best-selling Volvo model globally and in China.
Globally, XC60 sales have increased 20.4 percent to 98,309 cars in the first nine months of 2014, while sales in China are up 32.3 per cent to 24,940 cars over the same period. Earlier this year, the XC60 passed the 500,000 cars sold mark since it was launched in 2008.
XC90 premiere at Guangzhou Motor Show
At the 2014 Guangzhou Motor Show, Volvo Cars has premiered the all-new XC90 to Chinese audiences. Together with the United States, China will be the main market for what is the first Volvo fully developed under the company’s Chinese ownership.
The all-new XC90 is a visually striking, premium quality seven-seat SUV with world-leading safety features, a top-of-the-line T8 Twin Engine powertrain with close to 400bhp and CO2 emissions of around 60 g/km, an unrivalled combination of power and fuel efficiency and a superlative interior finish. The car also features beautiful interior and exterior design including an innovative tablet-like touch screen control console, which forms the heart of an all-new in-car control system.
Three years in the making and part of a US$ 11 billion (Rs 67,540 crore) investment programme, the all-new XC90 marks the beginning of a new chapter in Volvo’s history. The car captures Volvo’s future design direction, incorporates its own range of new technologies and utilises its new Scalable Product Architecture (SPA) technology and its highly efficient two-litre, four-cylinder Drive-E powertrain family.
“SPA has enabled us to create the world’s first SUV without compromises,” said Dr Peter Mertens, senior vice-president, Research and Development of Volvo Car Group. “You get the in-command feel, generous interior space and flexible capability combined with the agility and smooth comfort of a much smaller and lower car.”