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A few years ago many could not have predicted the potential of UV’s market. Though experts had never estimated the growth potential many skeptics believed that GST could slow down the potential growth. However, the initial response to the all-new Volvo XC40 has for now put all such standing questions to rest for once and for all. Within a fortnight of its launch, the SUV has garnered 200 bookings. And speculations are rife that the Swedish made XC40 could be witnessing a growth witnessed by only a few in the segment. Here’s a glimpse to what the future holds for the small SUV and the Swedish car makers India plan.
Volvo aims to sell nearly 1000 more units of the small SUV in 2018. Last year about 2,029 units of the XC40 were rolled out. This year the company strives to achieve the coveted 3000-unit mark followed by 5,000 units in 2020.
Volvo has set high goals for an entry level brand but the great public response has only further strengthened the car maker's optimism. Charles Frump, MD, Volvo Car India, believes that the introduction of the Xc40 could not have been at a better time. The small SUV segment promises sale of around 6,000 units per year.
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Richard Snijders, VP Asia-Pacific, says,”We expect the initial allotment to sell out quickly. From next year I think we are likely to double the allocation. So we expect to sell around 100-150 cars per month,”
Snijders also confirmed that full-fledged local assembly would be achieved within a year. This year the India Bound units of the XC40 sum up to 700 units. Interestingly, the XC40 is the first to rest on the Volvo CMA platform. Volvo’s other offerings like the XC90 and S90 are based on the SPA platform and locally assembles in the carmaker’s Bengaluru plant. By the end of September, Volvo will begin assembly of the XC40 and the mid-size XC60.
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Richard Snijders further claims that the XC40 would be a long-term player and remain the entry level to the Volvo brand. The XC40 will be the true crowd puller and remain the entry level to the Volvo brand unlike V40 and V40 CC which would be retired later. The appeal of XC40 would drive sales and claim stake to 30-35 percent of monthly sales.
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One of the main factors that have contributed towards the tremendous sales growth has been the Economic Price-Tag of the SUV despite being a fully imported piece of automobile. The competitive price tag means that it immediately attracts potential buyers. This, however, does not mean that the carmaker has played down on dealer margins on the cars. The company’s decision to invest in getting a fair entry-level price has been the prime factor in this regard. It has not only helped in building a great momentum moving forward but also helped in doing the necessary groundwork before the sales floodgates are wide open in the still-developing market with huge potential.
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