Volvo Cars, the Swedish automobile maker has been in the auto business since 1927. Despite its rapid expansion in its massive range of cars and SUV’s, it is still known for its quality and safety standards. Volvo Cars have sales and service network stretching over 120 countries, comprising some 2,500 sales outlets and service workshops and selling 4,28,000 cars around the world, India is the latest addition to its growing international circuit
Paul de Voijs is responsible for overall planning and operations of Volvo Cars in India. With 22 years of experience in the automotive sector, Paul started as an Area Sales Planner for Volvo Cars. Moving across different operations across Europe Paul has taken the bait for the Indian operations and in a freewheeling chat with ET Automania he discussed the scope of Volvo in the growing luxury car segment and the possible entry of smaller cars from the Volvo stable in future.
With Volvo Cars coming though the completely built units (CBU) to India, is the price band of Rs 38 to 52 lakh right for the domestic market?
Paul – We have been evaluvating the Indian market for a long time.We carried started the first tests in 2004.We got the first indication that time is right to enter the market and started field testing of our two SUV – XC90 (diesel) for 1 lakh km each. Backed by positive results for the product and good response for luxury marquees, we think we have taken the strategically right time to enter the Indian market.
You have launched your two flagship models- Volvo S80 sedan and Volvo XC90, an SUV. What’s more from Volvo to delight the Indian consumer?
Paul: First we will gauge the response of both these vehicles first. We have options to get various models to India like C60 and the much smaller C40, which is more ideal for the Indian market. In the SUV segment, the SC60 and XC70 are other possible options for the delight of Indian customer. If the market develops we may go for the estate model in the V4 series and convertibles in the later stage.
Volvo is strong on brand quality and safety parameters, infact your tag ‘responsible luxury’ denotes it. What is your unique selling point for Indian market?
Paul: Right we are new here, but not our cars. We have over 200 Volvo cars in India, mainly imported by dealers and embassies. But to have that qualitative Volvo experience we will start a dozen dealerships and service centres. Three in – Chandigarh, Delhi and Mumbai – are already in place.In – Hyderabad, Chennai, Ahmedbad, Kolkata ,will soon have their share of dealerships by 2008. We are the first one to offer two-year full warranty and two spare wheels in the industry, while our core values safety+quality+environment = responsible luxury remains on top of all levels of services.
Is the company planning any initiatives to go for local production in India?
Paul – We have to look at the volumes being supported by the market. We are not expecting high numbers initially but in next three-four years, we could be getting sufficient demand from Indian customers. We have to see when we break-even our in India and possibly go in for a local facility. A synergy with our local alliance partner Ford India Ltd is also not ruled out.
How significant is the Indian market for Volvo?
Paul – We have fairly large volumes in Russia and China, around 10,000 and 8,000 respectively. We are not looking for that kind of volumes but reaching a 1000 units is not a problem in next few years. The economy is buoyant and incomes are increasing steadily. So the future will be better . We believe new models will help us increase our sales tally in the future.
What more options will be added in these models?
Paul – Both the models – S80 and XC90 – are petrol and diesel versions making (a total of 6 cars). These are the second generation of Volvo’s large prestige sedan and SUV and were launched at the Geneva motor show in the spring of 2006. These are luxurious cars with elegant and dynamic profile influenced by modern Scandinavian design. Only latest products from our stable will enter Indian market.
