Lower Sales Target of Volvo in 2008
Posted on March 3rd 2009Welcome back!
Volvo is able to sell only 100 units of car in 2008, so it fell short of its sales target in the last calendar year. The company points the cause of its poor distribution network.
The managing director of Volvo India, Mr. Paul de Voijs -
“We did not open as many dealerships as we had expected, owing to the exposure to the slowdown in the third quarter. Most of the plans moved to 2009.”
Further he added -
“Moreover, we are relatively new in India and it takes time to understand how the market functions.”
The auto industry experts say that Volvo India did not get along with the Indian market because of its expensive cars that offer more safety rather than luxury. The Volvo cars are extremely expensive even for the premium segment. The cars such as XC90 and S80 sold by Volvo in India are priced at around Rs. 40-50 lakh.
The cost of Volvo S80 is Rs. 38 lakh in Mumbai (ex-showroom) which is extremely priced as compare to BMW 325i priced at Rs. 35 lakh, Mercedes C220 costing Rs. 27.6 lakh, an dAudi A4 priced at Rs. 30 lakh.
By editor in Auto India News, Volvo
dreamthecar responded on 03 Mar 2009 at 6:48 am #
The company is well aware of the reason for its low sales. It is very necessary to have a strong dealership network across the country This will help the customers to approach well. With minimum number of dealers, it is natural for the customers to opt for other car brands.
Rahul,
Indian Car Advisor
Ashok Mehta responded on 12 Jun 2010 at 4:57 am #
Volvos are very safe cars, and the Management have to get their dealerships sorted as well as spend more on advertising. Maybe a free gift along with the car will help.