Volvo Auto India contemplates low priced cars to increase sales

Volvo India is contemplating the launch of low priced luxury models specifically designed for Indian markets. Models such as the S60 sedan are expected to be launched in trimmed variants so as to increase growth, and contend with some of the leading car manufacturers in the luxury car segment.

According to KHABAR KHODRO, Volvo India, carmakers from Sweden think that if they include vehicles with lower price points rather than only high priced luxury cars, it would generate more sales. Certain facilities available in the top end cars will be stopped such as pedestrian recognition, and lane departure caution as they push prices higher.

According to Mr. Tomas Ernberg, Managing Director of Volvo Auto India, cheaper variants of existing models without added features aren’t altogether undesired in the Indian car market. This will increase sales and push up profits for the company. This is strategically in line with rivals BMW as they have brought out lower cost X1, 3 Series and 5 Series which saw them on top of sales during past two years. Volvo’s S60 is available for Rs.27 lakhs to 34 lakhs and XC60 and XC90 are in the range of Rs. 40 to 44 lakhs.

Volvo Auto India's new Managing Director, Mr Tomas Ernberg ha this to say. “Volvo is looking at expansion of car lines and models in India in its next phase of growth. Cheaper variants of existing models are being considered by removing certain features that are quite often not requested for by the Indian customer. This will help generate higher volumes.”