Volvo Heads to India
Saying it believes “the timing is right,” Volvo Car Corporation said it will officially begin selling its cars in India in the fourth quarter of 2006 — making Ford’s Swedish subsidiary virtually the last of the world’s leading brands to push its products in this country of 1.1 billion.
Volvo Car India will kick off its operations with the S80 and the XC90, to be followed by additional models over the next two years. Headquarters will be in Delhi.
Volvo President Fredrik Arp observed, “It is important for Volvo to establish a presence on this market at a time when India is showing considerable growth in passenger cars,” adding that Volvo projects Indian vehicle sales will grow from 1.0 million to 1.6 million units by 2010.
Curiously, the company is moving into the Indian market initially with its two most prestigious and expensive models, in contrast to several of its rivals in the premium sector, which have focused on lower-end models here. Volvo did not specify which products will follow the S80 and the XC90, although the company is poised to launch two significant models in the coming year — the C30 sport wagon and the XC50 compact crossover — that could have considerable appeal in the India market.
