Swedish carmaker Volvo Car Corp today said its expects India to become its third-largest market in Asia after China and Japan by 2016, as it gradually builds up its presence.
"The way the Indian luxury car market is growing, we expect it to become the second largest in Asia after China by 2020. We have every interest to take part in this growth," Volvo Car Malaysia (President Asia Region) Goran Larsson told PTI.
He said currently, Volvo's presence in the Indian luxury car market is minimal in terms of volumes, but the company will gradually grow over the medium and long term.
"While it is difficult to predict where exactly we will be, considering the uncertainties of the market, we feel that India could be the biggest market for Volvo Cars in Asia outside of China and Japan by 2016," Larsson said.
In 2010, Volvo sold 130 cars in India, while the country's overall luxury market saw sales of around 15,000 units.
Volvo Auto India Managing Director Paul de Voijs said by conservative estimates, the Indian luxury car segment will touch about 1,30,000 to 1,40,000 units by 2020.
"We are very optimistic that the market will continue to grow and gradually we will also become a significant player. The idea is to offer the best of the products at the right price," de Voijs said.
To expand its portfolio, the firm's Indian arm, Volvo Auto India, has launched its latest S60 sedan, which will be available in both petrol and diesel variants, priced between Rs 27 lakh and Rs 34 lakh (ex-showroom Delhi).
The new car boasts of unique features such as the "world's first pedestrian detection technology" with full auto brake that helps prevent car accidents involving pedestrians.
"Volvo is known for safety and we will keep introducing features like these at reasonable prices here to build the market gradually," he said.
According to Larsson, not only widening the product portfolio, but also bringing alternate fuel technology, electric vehicles and hybrid models are all on Volvo Car's roadmap for India, provided there are incentives from the government for customers to get it at a reasonable price.
