Volvo Auto India targets 1,100 unit sales in 2013

Bangalore, June 20, 2013: Swedish luxury carmaker Volvo AB’s Indian unit has recorded a 53 percent year-on-year growth in sales between January-May 2013 on the back of new dealerships across the country.

Talking to Autocar Professional, Tomas Ernberg, managing director, Volvo Auto India, said sales have increased dramatically as the company has opened four new dealerships (Bangalore, Ahmedabad, Ludhiana and Gurgaon) this year. It has sold around 400 cars this year till end-May.

Ernberg was in Bangalore to launch the V40 Cross Country at the Martial Motors dealership for the Karnataka market.

He said the company expects to sell 1,100 units in the current calendar year 2013, up from 820 units it sold in 2012. He said the Bangalore dealership, which was opened in April, alone is expected to sell around 170 cars this year.

South India remains the most promising region for Volvo cars as 60 percent of total sales in 2012 came from four states in the southern region. Hyderabad is the No. 1 city for Volvo car sales.

At present, Volvo Auto India has 12 dealerships in the country, of which five are in the South. While a new dealership is to be opened in Visakhapatnam in Andhra Pradesh, the carmaker will also enter East India with a new dealership in Kolkata by the end of this year.

The premium car market in India stands at 30,000 units, of which Volvo had 3 percent share in 2012. This year the company’s market share is likely to climb up to 4.5 percent. In longer term, Ernberg said the company aims to acquire a 15 percent market share in 2020, when the Indian premium car market is forecast to be in the range of 150,00 cars per annum. Ernberg signed off by saying Volvo plans to have around 40 dealerships across India by 2020.

JAISHANKAR JAYARAMIAH