Swedish carmaker Volvo Cars is eyeing to double its market share to 10 per cent of the luxury segment in the next two years in India, according to a company spokesperson.
Currently, the size of the segment is estimated at about 40,000 units, which the carmaker expects to reach 50,000 mark by 2020.
“The growth in the segment is expected to grow by 15 percent to reach about 50,000 units, thus we expect Volvo cars’ sales to go up to 5000 units of cars in the next two years,” the spokesperson told ETAuto.
This year the company is looking to sell 2600 cars in India across its 9 products.
Currently, German carmaker Mercedes Benz with its mammoth product line up is holding the pole position, followed by BMW and Audi.
Volvo is betting big on Hybrids and electric vehicles to drive the growth after 2020, while for the time being, it expects to get additional volumes from newly launched XC60 and XC40, slated to be launched in July.
In 2017, Volvo sold 2,029 cars, which has highest share coming from one of the costliest products XC90 (priced between Rs 78 lakh to 1.3 crore ex-showroom).
The Swedish marque is also planning to increase its network from 21 outlets to 27 by this years.
The new outlets will come in Madhya Pradesh and West Bengal.
“We will also give mobile outlets on rent to these dealers to penetrate into the smaller towns and cities,” the spokesperson revealed.
Since, Chinese auto major Geely took over Volvo cars, its sales has been improving and last year they recorded a global sales of 5.71 lakh units while the profit also doubled to $1.6 billion in CY 2017.
In the Q1 of this calendar year, it has witnessed 14 per cent growth in volume. Globally, the carmaker has 12 product line up. When Geely took over in 2010, the car company was not making any profits.
From next year every Volvo Cars will have electrification which includes hybrid and full electric and its aims to sell one million electrified Volvo cars globally by 2025.
However, after 2025, the carmaker will aim to achieve 50 per cent of its total sales from full electric.
Earlier the carmaker has also made $11 billion investment in new platform and engine architectures with focus on new energy vehicles.
Source: ET Auto