Volvo Auto India expects 40-50% growth in 2014

The company is targeting to sell 1,500 units this year

Buoyed by increased acceptability among consumers, Swedish luxury car maker Volvo Auto India is expecting a growth of 40-50 per cent in the current calendar year. The company, which sold 913 units last year across India, is targeting to sell 1,500 units this year.

"The Indian luxury car market is less than 1.5 per cent of the total car market, so we foresee immense potential in this segment. Having received wider acceptance from Indian consumers, we are bullish on the Indian market. Currently, we have five models in India and plan to introduce one more by the end of this year," said Tomas Ernberg while speaking to Business Standard.

Ernberg added that the major volume of sales would come from S60-sedan and XC60-SUV which presently contribute to 65 per cent of the total volume sold in India.

He also added that the company is taking several marketing initiatives to increase brand awareness among the Indian consumers.

Ernberg said the company has recently launched its first exclusive lounge at the Terminal 3 domestic departure, Indira Gandhi International Airport, Delhi.

"Since it is one of the largest aviation hubs in South Asia with a heavy influx of high profile flyers, creating a Volvo lounge at such a strategic location is a step closer towards our existing and prospective customers," he added further.

On being asked about the anticipated growth in luxury segment Ernberg said the luxury car market is likely to grow by 5-10 per cent this year compared to 10-15 per cent last year."

Meanwhile, to strengthen its foothold in the country, Volvo has announced new dealership in Chandigarh. The company currently has 13 dealers across India and has plans to add three more in the current year, which may be in Kolkata, Mumbai and Madurai.