Volvo looks at 35 per cent growth in India

The company plans to launch a new car this year

Volvo Auto India, unit of the Swedish auto major, today said it is targetting 35 per cent growth this year by clocking sales of 1,100 units, and will launch a new car 'Cross Country' this year.

"The Volvo V40 Cross country will be launched in India by the end of third quarter. There are some procedural delays in bringing the car," Tomas Ernberg, Managing Director, VAI, told reporters here.

The company currently sells four premium models as CBUs (Completely Built Units) in India -- the luxury SUV XC90 and the luxury Sedan S80 which are imported from the Swedish plant and the compact luxury SUV XC60 and the premium sedan S60, imported from the Belgium plant.

The brand has been the fastest growing luxury automobile in India last year selling 821 cars, against 320 units in 2011, which is almost a 150 per cent growth in sales, he said.

Volvo, which registered a market share of 2.8 per cent by 2012 end in the luxury car segment, hopes to touch 15 per cent market share by 2020. In Hyderabad, Volvo has a market share of 21 per cent having sold 20,000 cars.

"We focused lot of energy on Hyderabad. In 2013 we will be replicating the success in Kochi, Chennai and other cities," he said.

In Kochi, the company hopes to double its sales. Kochi will represent 10 per cent of volumes Pan India. Last year, it was 8 per cent. Volvo has 9 service stations all over India and plans to touch 14 by 2013-14 end.

To strengthen its foothold in India, Volvo cars along with its dealer partner MGF Auto opened a 6,000 sq ft service centre here, the first in the state.