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Auto China 2004: China a key growth market for Volvo Cars

 

 

  • Significant volume growth expected
  • Increased market share in the premium segment
  • Volvo S80 the most popular modelLast year, Volvo Car Corporation sold 2,500 cars in China and this year will see an increase of 12 percent.And during the 5–6 coming years, Volvo expects sales to grow even more rapidly.“Volvo is a desirable brand in the same league as the other top premium brands.  This means that our customers’ expectations are extremely high. They expect to get premium services and quality for their money. That is a challenge we have to live up to”, says Hans-Olov Olsson, President and CEO of Volvo Cars at Auto China 2004 in Beijing.

Focus on customer satisfaction
Customer satisfaction is the top priority for Volvo Cars on the road towards being the world’s most desired and successful premium car brand.
“Just as we talk real life safety when we design our cars, we have to provide real life customer service in our service receptions and workshops. Our mission is to fulfil our customers’ expectations, or even better, to exceed them. Focusing on customer satisfaction is extremely important for our growth in China,” says Hans-Olov Olsson.
 
Growing dealership network
At the moment, Volvo Cars has 35 dealerships in China.
The plan is to double the network over the next five years – a growth that will be co-ordinated together with Jaguar and Land Rover, the other premium brands within Ford Motor Company.
“However, the brands will still keep their individual integrity and we have to make sure that every new dealership lives up to our customers’ expectations of personal service and quality,” says Hans-Olov Olsson.

 

Volvo considers manufacturing
Volvo Cars also is considering starting the manufacture of cars in China.
“To reach a competitive market situation Volvo Cars is studying local manufacturing opportunities in China and a decision will be taken in the near future,” says Hans-Olov Olsson.

 

Increased market share
During the period up to 2010, the premium segment in which Volvo operates is expected to grow from some 105,000 cars to 345,000 cars.
At the moment, Volvo’s share of the premium segment is 2.3 percent – and the aim is to achieve a significant increase over the next 5–6 years.
“I want to emphasize that our perspective is based on the Volvo tradition of building lasting relationships. We are not here to look for quick, short-term gains.  Our objectives are long-term ones – and our presence in this market is serious and restrained. We want to build an operation and an organisation that will be good for Volvo and contribute to China’s development as well,” says Hans-Olov Olsson.

 

Volvo S80 the best-seller
At the moment, the demanding Chinese car buyers favour the luxury Volvo S80 sedan. Last year, almost 90 percent of Volvos sold in China were Volvo S80:s. This makes China the fourth largest market for the flagship sedan model.
The XC90, which has been an enormous success for Volvo since its introduction in 2002, accounted for 5 percent of sales in China last year – and Volvo expects sales figures for the XC90 to grow rapidly over the next few years.
Last year, Volvo Cars also revealed the new Volvo S40 at the Frankfurt Motor Show – a compact sedan with a sporty drive and safety at the same level as the larger Volvo S80.
“The Volvo S40 will be introduced in China in late 2004. It will make our product portfolio stronger and help create the sales boost we are looking for,” says Hans-Olov Olsson. He adds:
“All cars that we sell here in China share the values that are part of Volvo’s rich heritage. They are stylish, exciting and enjoyable to drive, they provide comfort and functionality with premium quality. On top of that, they feature new advanced technology in the field of safety and in-car entertainment.”

 

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