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Volvo Auto India plans cheaper variants to boost sales

By Motortrend India Staff   |   24 July,2011

Volvo Auto India plans to launch stripped-down variants of some of its models to boost sales in an economy where rivals BMW, Audi and Mercedes are seeing an upswing in luxury car sales.


“We may consider removing some features to be price competitive,” said Tomas Ernberg, the newly appointed managing director of Volvo Auto India.


Volvo does not manufacture cars in India. Its current range of products are imported, making them expensive than its competitors. The Volvo cars are priced in the range of Rs 38 lakh to Rs 55 lakh. The import duty in India is as high as 110 percent which makes unviable to make the models price competitive.


A stripped-down variant will help Volvo lower the price and compete with rivals such as BMW, Mercedes and Audi. German luxury brands have assembly operations in India for most of its models. These carmakers have also offered limited editions at competitive prices to attract more consumers.


Volvo Auto India is the luxury car arm of the Swedish automaker Volvo Cars owned by Chinese auto maker Zhejiang Geely Holding Group Co.



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