Swedish car maker Volvo to focus on India, China

The company also plans to launch its premium crossover vehicle V40 cross country in India by the end of June

Swedish luxury car maker Volvo Auto on will be focusing on India and China markets for expanding its presence in Asia region, its vice president (International) Thomas Andersson said on Wednesday in Ahmedabad.

He said that though their growth in Asian market was primarily driven by China, luxury car market in India looked promising as it was fast growing better than other European countries.

The company, which expects 35 per cent growth in 2013, also plans to launch its premium crossover vehicle V40 cross country in India by the end of June this year, and expects its sales to reach 50 per cent of total India sales.

"Our focus is on Asia as the European market is slowing down. Here we are focusing on India and China markets," said Andersson, who was here to inaugurate Volvo Auto India's first showroom in Gujarat.

"Primarily, the luxury car market is driven by China, but at the same time the luxury car market is growing much faster in India compared to European countries," he said.

Andersson said that to cater to Chinese market they are setting up a manufacturing unit there. "China operations is progressing well. We expect it to be operational by end of 2013. That facility will only cater to China market," he said, adding that for India the car would be imported from their plant in Sweden or Belgium.

Negating any plans of setting up manufacturing plant in India, Andersson said, "Industrial plans has to follow commercial opportunities. So first we need to seize the commercial opportunity. We would never set up the plant or unit were we do not have the protection and market force."

Explaining reasons for not setting up plant in India, Andersson said, "We have strong manufacturing facility in Europe. We are currently setting up industrial operations in China. We need to focus on that. Of course, we are open to new opportunities, but as of now there is no decision to set up plant in India."

Volvo Auto India managing director Tomas Ernberg also said that they were expecting 35 per cent growth in 2013 with sale of 1100 units. Last year in 2012 the company sold 820 units in India.

Gujarat dealer for Volvo cars Dhaval Thakkar said that they would be expanding dealership network in the state in the next two years. "We will be opening showroom in Surat in 2014 and in Rajkot in 2015. We expect to sell 150-200 cars this year," Thakkar said.

He further said that they would be launching their premium V40 cross country car in India by end of June this year.